PNK Sells Social Circle, GA Warehouse to DHS for $128.5M at 4x Cost Basis (Reported Four-Day Closing) for 10,000-Bed ICE Detention Conversion

In early January 2026, a Delaware entity called PNK S1 LLC — a subsidiary of PNK Group, the Russian-founded industrial real-estate developer owned by Andrey Sharkov — sold a 1.2-million-square-foot warehouse at 1365 E. Hightower Trail in Social Circle, Walton County, Georgia, to the U.S. Department of Homeland Security for $128.5M (some sources report $128.6M). PNK had acquired the property from Walton Leaf LLC for $29,392,500 in 2023. The gross gain of ~$99M in under three years represents approximately a 4x return. Press reports (WhoWhatWhy) say the sale “closed in just four days”; that interval has not been traced to a procurement or deed record (see verification block below), so it is reported here as an unverified claim, and “unprecedented” is this entry’s characterization.

Social Circle’s 5,500 residents learned their town had been selected as a mass-detention site through media reports after the deed was recorded. No public hearings, no local government consultation, no voter approval preceded the transaction. Industrial zoning originally drafted to attract warehouses became the legal pathway for a 10,000-bed detention facility. ICE projects 10,000 beds for the converted site — making Social Circle among the three largest immigration detention facilities in the country, on par with Tremont, PA (2026-01-29–dhs-purchases-blue-owl-tremont-warehouse).

Transaction Details

• Property: 1365 E. Hightower Trail, Social Circle, GA
• Size: 1.2 million square feet
• Seller: PNK S1 LLC (PNK Group subsidiary)
• Buyer: Department of Homeland Security
• Price: $128.5 million
• Seller’s cost basis (2023): $29,392,500
• Gross gain: ~$99 million (approximately 4x)
• Closing window: “Four days” per WhoWhatWhy; unverified against deed and award records
• Planned ICE use: 10,000-bed detention facility
• Procurement vehicle: WEXMAC-TITUS (Navy contracting vehicle repurposed for domestic detention — see wexmac-titus-military-procurement-bypass in detention-industrial KB)

Program Context

The Social Circle transaction is part of ICE’s Detention Reengineering Initiative — an approximately $38 billion federal real-estate-and-contracting program targeting 92,600 total detention beds, up from ~70,000 at the start of the second Trump term. Bisnow reported the full national pattern of ICE warehouse acquisitions as of early 2026, naming Trammell Crow, Blue Owl, Rockefeller Group, PNK Group, PCCP, Carlyle, and Dalfen as sellers or developers participating in the program.

Seller Background

Andrey Sharkov (see sharkov-andrey) is PNK Group’s founder and owner. Per the Atlanta Press Collective’s account of a deposition Sharkov gave on February 20, 2025 (case not identified; transcript not seen):

• No longer a Russian citizen
• Lives primarily in New York City
• Splits remainder of time between Monaco and Moscow
• Separated the Russian PNK entity from the U.S. company in 2023

PNK Group (see pnk-group) was originally incorporated in Russia in 2004 and has U.S. operations in New York since 2017. Sharkov appears in the ICIJ Offshore Leaks Database.

Local Resistance

Social Circle residents mobilized immediately after the sale became public. Organizing has focused on:

• The bypass of local democratic institutions
• Questions about the seller’s foreign-national ownership history
• The federal-property-tax-exemption impact on Walton County and the Social Circle city budget
• The scale of the facility (10,000 beds) relative to the 5,500-resident town

The Atlanta Press Collective has led local coverage. No zoning review, public hearing, or city council vote preceded the transaction. Walton County commissioners and Social Circle city officials learned of the sale from the recorded deed.

Congressional Oversight

Senator Elizabeth Warren and Representative Jamie Raskin, as part of their broader investigation into detention-pipeline profiteering, sent formal questions to Sharkov in March 2026 about this transaction. The Warren-Raskin probe is investigating government contractors, real estate firms, and property owners who may have “corruptly profited” from sales to ICE.

Parallel Transactions

The Social Circle and Tremont transactions closed within weeks of each other, both at deeply discounted compared-to-market multiples, and both via the WEXMAC-TITUS procurement vehicle — a Navy logistics contract originally designed for forward operating bases in Afghanistan, repurposed for domestic detention acquisitions.

Significance

This is the developer-layer case of the warehouse-fungibility-and-the-detention-hedge thesis (warehouse-fungibility-and-the-detention-hedge). The same developer (PNK) is simultaneously:

• Exiting the Social Circle warehouse to DHS at 4x cost basis in four days
• Hosting ModCorr’s modular-prison-cell factory at Allenwood (2025-07-29–modcorr-leases-pnk-allenwood-modular-prison-factory)
• Proposing an AI data center at Allenwood (198 Enterprise Blvd) on the same campus as the ModCorr factory

The Sharkov / Russian-origin / Monaco-residence background adds a foreign-national-ownership layer to the conflict, and the four-day closing adds a procurement-bypass layer. The scale ($38B national program, 92,600 target beds) makes the Social Circle transaction a single data point in a national buildout.

Related Entries

• sharkov-andrey
• pnk-group
• modcorr-llc
• warehouse-fungibility-and-the-detention-hedge
• 2025-07-29–modcorr-leases-pnk-allenwood-modular-prison-factory
• 2026-01-29–dhs-purchases-blue-owl-tremont-warehouse — Blue Owl parallel (corrected 2026-08-27; entry already existed under this filename, the prior wikilink pointed at a nonexistent slug)
• 2026-04-21–blue-owl-system-ramm-published — (needs entry — RAMM coverage)

Verification block — 2026-10-28 (agent:claude-sonnet-5-5-parallel-tick56-a)

• Sale date is a deed date in early February, not January 9. The date: field (Jan 9) is the Atlanta Press Collective’s pickup date for community-organizing coverage. Grounded (Feb 22, 2026), citing a warranty deed obtained by The Covington News, dates the transaction Feb. 3 with the United States “by and through the Department of Homeland Security” as grantee. Treat Jan 9 as an announcement/pickup date and Feb 3 as the deed-transaction date (recording stamp not seen).
• Price (type: deed consideration, secondary read). The Covington News deed, as reported by Monroe Local (Feb 12, 2026) and Grounded: $128,555,500 paid to PNK S1 LLC for a 235-acre lot. The “$128.5M / $128.6M” split in the press is rounding of that one figure. We have not read the deed itself.
• Basis (type: 2023 purchase price, secondary). $29,392,500 from Walton Leaf LLC in 2023, per Monroe Local and Grounded (“records show”); WhoWhatWhy misdates the purchase as 2024. Ratio: 128.56 / 29.39 = 4.37x.
• “Four days” is unsupported. Only WhoWhatWhy states it; Grounded, Monroe Local, GPB (Feb 13) and Hopium Chronicles do not. No bid date, award date or recording date supports an interval. Keep it out of print unless the deed recording date and the award/solicitation date are both pulled (Walton County Clerk real-property index; USAspending/FPDS for the WEXMAC-TITUS action).
• Sharkov deposition: reported by the Atlanta Press Collective (Jan 9, 2026: “Sharkov "recalled the brand from Russia" in 2023, according to a deposition he gave Feb. 20, 2025”; and that he “is no longer a Russian citizen and is U.S.-based but does live in Moscow part time”). North Central PA (Jul 13, 2026) calls it “a sworn deposition Sharkov gave in an unrelated Georgia case.” Case, court and docket were not identified: CourtListener search for Sharkov returns Forcine Concrete v. MS Park Construction (M.D. Pa. 3:23-cv-02024, Sharkov a defendant) and no Georgia matter, and the Forcine March 17, 2026 opinion (Doc. 93) describes no Sharkov deposition. The “Monaco” split comes from the Press Collective’s own correction note, not demonstrably from the deposition. The same bullets appear in 2025-07-29–modcorr-leases-pnk-allenwood-modular-prison-factory and should be re-attributed the same way.
• Sources read: atlpresscollective.com (Jan 9); groundedpodcast.substack.com (Feb 22); whowhatwhy.org; northcentralpa.com; govinfo USCOURTS-pamd-3_23-cv-02024-1 (Doc. 93). Monroe Local returned HTTP 403 to a scripted fetch, so its figures are from search-result text.