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Correctional Facility Data Needed

Discussion in 'Commercial/Industrial Appraisals' started by mglower, Dec 18, 2011.

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  1. mglower

    mglower New Member

    0
    Dec 18, 2009
    Professional Status:
    Appraiser Trainee
    State:
    Pennsylvania
    Hi --

    I'm new to posting, but read AF a lot. Please excuse me if my post is a little "newbie" -- I am.

    I plan to do a research project on correctional facilities (community correctional facilities - CCFs -like halfway houses, or residential drug treatment centers). I hope it turns out well enough to use as a research report for the MAI demo. The problem, of course, is lack of data.

    If anyone has information about transactions of community correctional facilities, I would appreciate the information.

    Helpful advice (about CCFs or about research demos) is also welcome, as well.

    Many thanks in advance.
     
  2. Roy Courtney

    Roy Courtney Senior Member

    3
    Dec 8, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Texas
    You can get some information by checking out the websites for:
    CCA - Corrections Corporation of America; and MTC - Management & Training Corporation. Both of these manage prison facilities for states or the federal prison system. In some cases they lease the facility from the government and in others they actually build and operate the facility. There is a bidding process with the government agencies. I would think that the terms of the bid would be available as public information. I hope this is helpful!
     
  3. mglower

    mglower New Member

    0
    Dec 18, 2009
    Professional Status:
    Appraiser Trainee
    State:
    Pennsylvania
    Thanks - have checked out CCA and Geo

    Thanks for the quick reply. I actually have a few Pennsylvania contracts (they can be obtained through FOIA), so I have a taste of the revenue side. The government pays per inmate night, so these properties appear to have some things in common with hospitality properties.

    I'd like to get some more information on the expense side, as well as real estate rents/sales for these properties.

    If anyone has a contact at Geo or CCA that would be helpful. I will eventually try to cold-call Geo and CCA, but a contact there would increase my success. MTC is new to me -- I will look that up, thanks.

    And any leads on operations/sales by smaller providers would be appreciated.

    Thanks again for your support in this fascinating project.
     
    Last edited: Dec 18, 2011
  4. Roy Courtney

    Roy Courtney Senior Member

    3
    Dec 8, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Texas
    I agree that they are a little like hospitality properties. Many hotels have a restaurant but it is operated by a seperate entity. These correctional facilities provide medical care that is operated by a different party. They usually have the food service, commissary, counselling, education, etc. provided by seperate contracts.
     
  5. PL1957

    PL1957 Senior Member

    6
    Jul 19, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Illinois
    Keith Holbrook, MAI specializes in correctional facilities. He's in Shreveport, LA.
     
  6. grizphan

    grizphan New Member

    0
    Dec 28, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Montana
    I've appraised several correctional facilities and if you ever listen to a stranger on the internet do now. Forget about doing it for your demo. It won't pass and will be a total waste of your time.
     
  7. Michael S

    Michael S Senior Member

    7
    Mar 18, 2009
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
  8. mglower

    mglower New Member

    0
    Dec 18, 2009
    Professional Status:
    Appraiser Trainee
    State:
    Pennsylvania
    Thanks for help.

    Thank you, PL1957, for the contact. An MAI that does correctional facilities! Awesome!

    And Grizphan, the advice is appreciated. I am planning to do a research project, so I will not be doing the usual demo report. You are so right, a demo on a correctional facility would be a nightmare. I'm hoping a research project isn't also -- though I'll have to let you know. If you did a few appraisals of correctional facilities, can you share more of exactly what the difficulty was? I've done a few, and the data provided (or not) by the operator was difficult to verify, and we had serious issues trying to separate out the real estate from the going concern.

    To Michael S. -- those contracts are wonderful. Both Geo and CCA contracts. Very nice, many thanks.
     
  9. mglower

    mglower New Member

    0
    Dec 18, 2009
    Professional Status:
    Appraiser Trainee
    State:
    Pennsylvania
    Trying to Separate Parts

    These community correctional facilities are usually small, so they don't contract out for food service, and they'll drive the residents to outside medical services. They hire their own staff of counselors and security staff as well.

    I am hoping to get enough information that I can establish a baseline of what it costs to provide the services for the business part of the operation -- aside from the real estate.
     
  10. justinschroeder

    justinschroeder Sophomore Member

    0
    Sep 13, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Illinois
    I dont know if it will help but there is a prison in Thompson, IL that was built by the state about 10 years ago and never opened. The federal government is currently trying to purchase it. There are several news articles online about it.
     
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