Overview

Rockefeller Group, a subsidiary of Japan’s Mitsubishi Estate, sold the Surprise, Arizona warehouse to DHS for $70 million — a property that cost approximately $12 million in 2023, representing a ~483% markup.

The Surprise Sale

• Seller entity: RG Surprise AZ LLC
• Purchase price: $70 million
• 2023 cost basis: ~$12 million
• Markup: ~483%
• Planned capacity: ~1,500 beds
• City of Surprise passed a 5-year ban on detention facilities (unenforceable due to federal preemption)
• Contractor awarded the facility (GardaWorld, $313.4M) has no background in detention work

Sources

• KJZZ: Company awarded Surprise ICE warehouse contract doesn’t have background in detention
• Bisnow: ICE warehouse buying spree