Newmark's Billy Sleeth Brokers $44.1 Million Sale of South Sound Center to Tourmaline Capital
Newmark has arranged the $44.1 million sale of South Sound Center, a 384,153-square-foot grocery-anchored retail center located at 711 Sleater Kinney Rd SE in Lacey, Washington. Executive Managing Director Billy Sleeth represented the seller, Capital Development Company, in the transaction. The buyer was Tourmaline Capital Partners.
A Generational Asset Changes Hands
South Sound Center has been owned and operated by Capital Development Company for approximately six decades, making the disposition a generational exit from a legacy asset. The center has long served as a cornerstone of the retail landscape in the greater Lacey and South Sound region, drawing approximately five million annual visits. Situated along a major retail corridor between two Interstate 5 interchanges, the property benefits from strong accessibility and visibility.
The sale closed June 12, 2026, at a price that equates to roughly $115 per square foot based on the 384,153-square-foot building size. Newmark announced the transaction on August 19, 2026.
Tenant Mix and Anchor Lineup
South Sound Center is anchored by Trader Joe's, which executed a new 10-year lease and opened at the property in November 2025. The grocer occupies space at 691 Sleater Kinney Rd SE, a building converted from a prior use, and its long-term commitment reinforces the center's positioning as a grocery-anchored destination. Additional national tenants include Marshalls, PetSmart and The Michaels Organization, with Target serving as a shadow anchor on an adjoining parcel.
The property was 81% occupied at the time of sale, leaving approximately 73,000 square feet of vacant space across the roughly 31-acre site. Newmark described the vacancy as offering the buyer a pathway to drive additional value through lease-up, operational enhancements and strategic capital improvements.
Value-Add Opportunity and Redevelopment Optionality
Tourmaline Capital, a San Diego-based investment firm, acquired the asset through a local entity, Lacey South Sound LLC, per county records. The buyer inherits stable cash flow from a roster of national tenants anchored by a newly committed grocer, alongside meaningful lease-up potential and long-term redevelopment optionality across the approximately 31-acre site.
Grocery-anchored centers with strong national brands have drawn consistent investor interest as daily-needs tenants provide a degree of insulation from e-commerce headwinds. Trader Joe's 10-year lease commitment, executed ahead of the sale, strengthens the asset's income profile and underpins the value-add thesis the buyer is pursuing.
Puget Sound Retail Market Context
The transaction comes amid strengthening demand for retail assets in the Puget Sound region. Real Capital Analytics data cited by Newmark shows the market recorded $346.2 million in retail sales volume across more than 1.3 million square feet during the 12 months preceding the announcement. Transaction volume accelerated further in the second quarter of 2026, rising 60.9% year-over-year, reflecting continued appetite for well-located retail properties anchored by daily-needs tenants.
Capital Development Company's exit from South Sound Center after roughly 60 years of ownership marks one of the more significant retail dispositions in the South Sound submarket in recent memory. For Tourmaline Capital, the acquisition provides an established regional retail hub with a stabilized anchor base and room to grow occupancy.
About the Parties
Newmark Group, Inc. (Nasdaq: NMRK) is a commercial real estate advisory and services firm. For the twelve months ended June 30, 2026, Newmark generated revenues of more than $3.6 billion and operated from over 195 offices with more than 10,000 professionals across four continents.