07:41 AM EDT, 07/01/2025 (MT Newswires) -- GEO Group ( GEO ) said Tuesday that it will acquire the 770-bed Western Region Detention Facility in San Diego, California, for $60 million from SDCC Middle Block, an affiliate of Holland Partners Group.

The company said it leased the facility for $5.1 million annually under a contract expiring in 2029 and has a contract with the US Marshals Service for the exclusive use of the San Diego facility.

The purchase, expected to close on July 31, will be funded through a like-kind exchange using proceeds from the planned July 25 sale of its Lawton Correctional Facility in Oklahoma, the company said. The exchange is expected to yield $9.5 million in capital gains tax savings, the company added.

GEO said it expects receiving $222 million in net proceeds, which it plans to use, along with cash and liquidity, to pay down senior secured debt, including $300 million in floating-rate obligations.