A medical office building on Herff Road in Boerne has new owners. Lincoln Property Co. and PGIM have acquired The Sobo Medical Building, a multi-story property that is roughly 93% leased to a mix of healthcare providers and specialists, according to the building’s operators and reporting on the deal.
The acquisition was first reported by Connect CRE, which describes The Sobo as a 52,000-square-foot medical office on Herff Road. CommercialSearch, however, lists the building at 52,410 square feet and gives its address as 112 Herff Road — a discrepancy the available reporting does not reconcile. CommercialSearch also reports that CBRE represented the seller and arranged acquisition financing for the deal.
Neither the seller, the purchase price, nor the lender was disclosed in the companies’ release, RamaOnHealthcare reported, noting that Lincoln announced the deal on Oct. 27. The outlet also reports that the building opened in 2019 and is about 93% leased, with tenants offering primary care, ambulatory surgery, orthopedics, pain management, physical therapy, mammography, gastroenterology, diagnostic imaging and clinical research.
Baptist Health System Anchors the Tenant Roster
The Sobo is operated by Baptist Health System and the Surgery Center of Boerne, per Connect CRE. Baptist Brain & Spine Neurosurgery is also among the entities housed in the building, giving it a sizable footprint of specialty medicine inside a single Boerne address.
That tenant mix lands in a submarket where the overall numbers are softening. The same Connect CRE report notes broader context from Matthews, which found San Antonio medical-office vacancy climbing to 12.27% in the second quarter of 2026 — the third straight quarterly increase — alongside negative absorption of 18,423 square feet. Asking rents, by contrast, barely budged, holding at $29.99 per square foot, up just 0.13% year over year, according to Matthews. The firm also reported 22 medical-office investment transactions in the San Antonio area during that quarter, with leasing activity concentrating along Loop 1604 and I-10 and the Far West and Far Northwest submarkets emerging as demand hotspots.
A Bigger Medical Campus Planned Nearby
The purchase lands amid separate plans for new medical space just down the same corridor. Perardi Development has confirmed plans for a multi-story medical campus along Herff Road near South Main Street in Boerne, a project expected to include a mix of healthcare, wellness and retail space, as reported by the San Antonio Business Journal and relayed in Connect CRE’s coverage.
That planned project, branded Wellness Plaza, is described as a three-story tower spanning 37,000 square feet and expected to cost roughly $14 million to construct. Perardi also holds an option on another 8 acres next to the planned site and is already contemplating a second tower roughly double the size of the first, according to the same report. Community Impact reported in September 2025 that the ground floor was designed for health- and wellness-focused retail, with doctors’ offices planned for the upper two floors; that outlet also noted the developer’s stated goal at the time of breaking ground in spring 2026 and opening offices by summer or fall 2027, though current construction status has not been independently verified.
A Regional Transaction for Comparison
Elsewhere in the region, a smaller medical-office deal closed in September. CFT Commercial Properties acquired a one-story medical office building at 790 Generations Drive in New Braunfels from P&C Asset Management Series LLC for $3.76 million, or about $314 per square foot, according to CoStar. That 11,976-square-foot building was fully leased to Action Behavior Centers and Webber Construction at the time of sale. The New Braunfels transaction is far smaller than the Boerne purchase and involves a different tenant profile, but it offers a glimpse at pricing activity in the broader San Antonio-area medical real estate market this fall.
Perardi Development’s own marketing materials point to the demand drivers behind the Herff Road push, citing a five-year expected population growth rate of 19.1% for Boerne. Combined with a nearly fully leased building changing hands and a second medical campus in the planning stages on the same stretch of road, the moves suggest investors see continued appetite for healthcare space in Boerne even as the wider San Antonio medical-office market shows signs of softening.
