The fire burned the most expansive building in the nine-building "urban village," destroying 246 housing units, nearly half the project's planned residential units, and possibly the 36 retail stores below that, which amount to 17% of the project's 538,000-sf of retail space. Rebuilding it will take years, says company president Steve Guttman.

Federal Realty holds two insurance policies for the upscale 42-acre residential and retail complex, valued at approximately $300 million. Sources say the policies should cover the damage, an estimate for which has not been released. San Jose Mayor Ron Gonzales concurs, saying the city is prepared to help, but "I don't think that's going to be necessary. I think our assistance is going to be limited to things like the permitting process.''

According to sources, it will be at least a few days before officials can come up with a damage estimate and possibly a week before investigators determine a preliminary cause of the fire. The fire department says that it has not ruled out foul play and has offered a $5,000 reward for hints as to how the fire started, but the unofficial consensus rumor is it started in the would-have-been Chili's restaurant, where welding work was taking place.