Media Statement: CoreCivic Provides Additional Information on Recent Real Estate Transaction - Appleton Detention Facility

The federal government's purchase price for the Prairie Correctional Facility (Appleton Detention Facility) should be understood in the context of the appraisal process that governs federal real property acquisitions, which is designed to determine objective fair market value. For this specialized property, independent appraisers hired by the federal government used a cost-based methodology grounded in current replacement cost, depreciation, land value and other market-based factors, with the appraisal then reviewed by the government for compliance with federal standards. The facility appraisal also accounted for significant facility renovations - such as ICE specific facility renovations and new security and fire systems.

The sale price of the Prairie Correctional Facility was determined following the federal government's assessment process by the independent appraisers.

It's important to understand that the reported $75 million figure and the federal purchase price measure two different things at vastly different points in a valuation process. The earlier figure was never an appraisal or a replacement cost and was never intended to be. It was a preliminary number dating back to 2015 which was an unsuccessful attempt to engage the MN DOC in a discussion of future use of the Prairie facility. The federal purchase price reflects what it would cost to build a facility of equivalent square footage and security at today's construction prices, less depreciation. Replacement costs for secure correctional facilities are substantially higher than many assume - Minnesota's own 2025 estimate to replace its Stillwater prison was approximately $1.3 billion for roughly 1,200 beds.

Additional information can be found in our recent News Release - CoreCivic Sells Two Additional Detention Facilities | CoreCivic, Inc.