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8/21/26
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Tourmaline Capital closed on a significant retail buy in Washington, paying $44.1 mil for South Sound Center, a 384.2k sf ($115/sf), grocery-anchored center in Lacey. The property, located at 711 SE Sleater Kinney Rd, was sold by Capital Development Company.
South Sound Center, a dominant retail hub serving the greater Lacey and South Sound region, was originally developed by Capital Development Company, which has owned and operated the center for approximately six decades. The center has long served as a cornerstone of the local community’s retail landscape.
The property is anchored by Trader Joe’s, which recently executed a new 10-year lease and opened in November 2025, reinforcing the center’s role as a high-performing grocery-anchored destination. Additional national tenants include Marshalls, PetSmart and Michaels, with Target serving as a shadow-anchor.
Situated along a major retail corridor between two Interstate 5 interchanges, South Sound Center benefits from exceptional accessibility and visibility, attracting approximately five million annual visits.
The property was 81% occupied at the time of sale, offering the buyer a clear pathway to drive additional value through lease-up, operational enhancements and strategic capital improvements, while simultaneously maintaining the center’s status as a community-oriented plaza. The investment is further supported by long-term redevelopment optionality across the approximately 31-acre site.
Newmark Executive Managing Director Billy Sleeth represented the seller in the transaction.
According to Real Capital Analytics data, demand for Puget Sound retail assets has strengthened considerably over the last year, with $346.2 mil in sales volume across more than 1.3 msf during the past 12 months ¹. Activity accelerated further in the second quarter as transaction volume increased 60.9% year-over-year, underscoring appetite for well-located retail properties anchored by daily-needs tenants.
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