In a move that has caught local officials and residents off guard, the federal government has finalized the $87.4 million purchase of a massive warehouse in Berks County. The acquisition is part of a broader, well-funded push by the Trump administration to convert industrial spaces into high-capacity immigration detention centers.
The deed for the nearly 520,000-square-foot facility, located at 3501 Mountain Road, was officially recorded on February 2, 2026. Formerly known as the Hamburg Logistics Center—and once the site of the historic Mountain Springs Arena—the warehouse is situated just a mile from I-78, neighboring an Amazon distribution center.
The Berks County purchase is not an isolated event. It is one of at least 23 sites nationwide identified by U.S. Immigration and Customs Enforcement (ICE) for conversion into “mega-centers.” This expansion is fueled by the “One Big Beautiful Bill,” a multi-billion dollar funding package passed by Congress to bolster mass deportation infrastructure.
Other recent federal acquisitions include:
Tremont, PA: A 1.3-million-square-foot former Big Lots warehouse in Schuylkill County, purchased for approximately $119.5 million.
Hagerstown, MD: A facility purchased for $102.4 million.
Surprise, AZ: A warehouse acquired for $70 million.
While federal officials laud the expansion as a necessary step to remove “vicious criminals,” local Pennsylvania leaders are grappling with the sudden loss of tax revenue and the impact on their communities.
Because the federal government is now the property owner, the site becomes tax-exempt. Local officials estimate a combined loss of roughly $624,000 annually in revenue for Upper Bern Township, the Hamburg Area School District, and Berks County.
“The township was not involved in this transfer and has not received any applications regarding the future use of the property,” said the Upper Bern Township solicitor in a statement.
The facility is expected to house up to 1,500 detention beds. Advocacy groups and some state lawmakers have expressed alarm over the speed of these acquisitions, citing concerns about human rights standards in converted industrial spaces and the “chilling effect” on local immigrant populations.
In Schuylkill County, residents have already organized town halls to protest a similar site located within 300 yards of a daycare center. In Berks, State Senator Chris Gebhard and Representative Jamie Barton confirmed they are seeking more information from the Department of Homeland Security (DHS) regarding security protocols and perimeter management.
