Majestic Realty Confirms Hutchins Warehouse Was Approached by DHS but Deal Rejected
The owner of a major vacant warehouse in North Texas has publicly addressed speculation surrounding plans for what could have become one of the largest Immigration and Customs Enforcement detention facilities in the country. The company made clear that it “has not and will not” move forward with any such agreement.
Majestic Realty Co., a California-based real estate firm with approximately 92 million square feet of property across the United States, confirmed it was approached by the Department of Homeland Security regarding a potential sale of its more than 1 million-square-foot industrial warehouse located at 950 N. Interstate 45 in Hutchins, roughly 11 miles south of downtown Dallas. However, the company stated it declined the proposal.
In a statement emailed Monday, company executives said, “Majestic Realty Co. has not and will not enter into any agreement for the purchase or lease of any building to the Department of Homeland Security for use as a detention facility.”
The firm also emphasized its ongoing partnership with local leadership, expressing appreciation for its relationship with Mayor Mario Vasquez and the City of Hutchins. Majestic Realty added that it remains focused on securing a buyer or tenant that would contribute positively to local economic growth. The warehouse has been on the market since its completion in 2022.
Local officials previously voiced concerns over the possibility that the facility could be operated by Immigration and Customs Enforcement (ICE), an agency within DHS. Reports suggested the proposed detention center could have housed as many as 9,500 detainees—more than doubling Hutchins’ population of approximately 8,000 residents. ICE did not respond to media inquiries regarding the proposal.
The outreach to Majestic Realty was part of a broader nationwide effort by ICE to expand detention capacity, supported by government funding approved last year. In recent months, the agency has acquired multiple industrial properties as part of this expansion initiative. These transactions have drawn increased public attention amid protests in several U.S. cities tied to immigration enforcement activities.
Majestic Realty is not alone in stepping away from potential agreements linked to detention center development. Landlords in Oklahoma City, Salt Lake City and Ashland, Virginia, have also reportedly withdrawn from negotiations connected to large-scale detention proposals.
At the same time, other property owners have completed sales to ICE. According to CoStar research, seven industrial facilities have recently transferred ownership for conversion into detention centers. These include properties in Arizona (Surprise), Georgia (Social Circle), Maryland (Williamsport), Pennsylvania (Hamburg and Tremont), and Texas (San Antonio and El Paso County), ranging in size from nearly 300,000 square feet to more than 1.3 million square feet.
As federal efforts to expand detention infrastructure continue, the Hutchins property highlights the growing divide among landlords over whether to participate in such initiatives.
Source: Original reporting by Candace Carlisle, CoStar News.
