Lincoln Property Company, PGIM Acquire 52,410-SF SOBO Medical Building in Boerne, Texas

DALLAS — Lincoln Property Company announced Oct. 27 that it acquired the SOBO Medical Building, a 52,410-square-foot outpatient medical building and surgery center at 112 Herff Road in Boerne, Texas, approximately 30 miles northwest of San Antonio. The acquisition was completed in partnership with PGIM.

The firm said the purchase expands its healthcare real estate presence in Texas and supports its strategy of investing in high-quality properties in growing markets. CBRE represented the seller in the transaction and arranged acquisition financing on behalf of Lincoln.

SOBO Medical Building: Property Details

Built in 2019, SOBO Medical Building is a three-story, Class A property that is approximately 93% leased. The building is anchored by Baptist Health System and Surgery Center of Boerne.

Tenants include a mix of healthcare specialists offering primary care, ambulatory surgery, orthopedics, pain management, physical therapy, mammography, gastroenterology, diagnostic imaging and clinical research.

The property is located near Interstate 10, providing access for patients throughout the greater San Antonio area.

Lincoln Property Company and PGIM Texas Healthcare Strategy

"The acquisition of this modern, Class A outpatient medical building, housing a phenomenal group of primary care and speciality practices is a strong addition to our growing Texas portfolio with PGIM. Boerne's favorable demographics and rapid population growth continue to drive demand for convenient, high-quality outpatient care, and SOBO Medical Building is well-positioned to meet that need," said Alastair Barnes, Vice President, Healthcare Investments at Lincoln Property Company.

Lincoln describes itself as one of the largest private real estate firms in the United States. Its combined management and leasing portfolio on behalf of institutional clients includes more than 720 million square feet of commercial space across asset types including office, multifamily, life science, retail, industrial and healthcare.

PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU), with $1.4 trillion in assets under management as of March 31, 2026. Its real estate business reported $213 billion in gross assets under management and administration as of the same date.

Boerne Growth and the San Antonio Medical Office Market

Boerne is one of the region's fastest-growing communities. Population estimates place the city at approximately 25,209 residents in 2026, with an estimated annual increase of 4.83%. Local development data indicates the population grew from fewer than 18,000 in 2020 to more than 24,000 in 2025, alongside continued commercial expansion around the I-10 and State Highway 46 area.

In the broader San Antonio market, medical-office vacancy declined to 10.9% in the third quarter of 2026, supported by 223,538 square feet of positive net absorption. Asking rents reached $30.07 per square foot, and 29 medical-office sales averaged $379 per square foot.

The market has been uneven. Vacancy stood at 12.27% in the second quarter, with negative absorption of 18,423 square feet, as older central-city buildings faced pressure. Demand was stronger in growth corridors along Interstate 10, Loop 1604, Far West/Westover Hills and Far Northwest, where providers have sought newer outpatient facilities.

Medical-office cap rates were reported in the mid-to-high 7% range in the second quarter, after reaching approximately 7.0% in the first quarter, reflecting higher interest rates and broader commercial real estate repricing.

San Antonio's overall office vacancy was 15.2% in the third quarter, down 160 basis points year over year, while Class A asking rents reached $32.02 per square foot, up 8.0% from a year earlier.

Outlook

The SOBO Medical Building's 2019 construction, Class A designation, surgery-center component and mix of clinical specialties set it apart from older medical-office inventory in San Antonio, where leasing pressure has been concentrated. The acquisition adds to the Texas healthcare holdings Lincoln Property Company is building with PGIM, with CBRE advising on both the sale and the acquisition financing.

Sources

• Lincoln Property Company press release: https://lpc.com/press-releases/lincoln-property-company-acquires-52410-square-foot-outpatient-medical-building-near-san-antonio/