Newmark has brokered the sale of South Sound Center, a grocery-anchored retail property in Lacey, Washington, for $44.1 million. The 384,153-square-foot center is located at 711 SE Sleater Kinney Road and serves as a major retail destination for the greater Lacey and South Sound area.
Newmark Executive Managing Director Billy Sleeth represented the seller, Capital Development Company, in the transaction. The buyer is Tourmaline Capital. Capital Development Company originally developed South Sound Center and has owned and operated the property for approximately six decades, making the sale a notable change in long-term ownership of the asset.
South Sound Center is anchored by Trader Joe’s, which recently executed a new 10-year lease at the property. The grocer opened its store at the center in November 2025, strengthening the asset’s positioning as a grocery-anchored retail destination. Trader Joe’s presence is complemented by additional national retailers including Marshalls, PetSmart and Michaels, which help drive consistent customer traffic to the property.
Target serves as a shadow-anchor to South Sound Center, further reinforcing the property’s role as a regional shopping hub. Although not part of the formally listed tenancy at the center, Target’s nearby presence adds to the retail critical mass in the immediate trade area and supports cross-shopping opportunities for both tenants and shoppers.
The center is positioned along a major retail corridor between two Interstate 5 interchanges, providing strong regional access and visibility for tenants. This location connects the property to the broader South Sound region and supports both daily needs and destination-oriented retail visits.
At the time of sale, South Sound Center was 81% occupied. The remaining vacancy provides Tourmaline Capital with the opportunity to enhance the property’s performance through targeted lease-up and operational initiatives. The buyer also has room to pursue strategic capital improvements to further strengthen the center’s competitive position and tenant mix.
The combination of a longstanding ownership history, a newly secured 10-year commitment from Trader Joe’s and a roster of recognized national tenants underscores the center’s role as a key retail asset in the Lacey and South Sound markets. The sale highlights ongoing investor interest in grocery-anchored retail properties with embedded value-add potential through leasing and asset management.
