Irvine Co.'s plans for the Sony campus is in step with Vision North San Jose, a two-year-old development plan that covers about 5,000 acres on either side of the North First Street corridor from Brokaw Road to the city's northern border. The plan calls for a dense mix of 32,000 high-rise homes, 26.7 million sf of new R&D office space, 1.7 million sf of retail space, parks, trails and open spaces in an area now dominated by sprawling corporate office parks. "We want to activate the area," Brewster says.

The redevelopment of the corridor has been held up by litigation initiated by San Jose's municipal neighbors, which are concerned about the impact the redevelopment will have on their infrastructure. Sony's land sale to Irvine Co. is contingent upon a settlement of the lawsuit, which is said to be imminent. In a related matter, the City of San Jose has agreed to pay close to $40 million for infrastructure improvements and additions both inside and outside city limits.

Details on Sony's negotiated lease rate and term at 1739 N. First St. and the sale price of its Zanker Road campus have not been released by the parties involved and were not immediately available on Wednesday. Rumors regarding the land sale put the price at $100 million, which would translate to $55,555 per apartment unit that Irvine plans to develop on the property. Max Gardner, president of the Irvine Apartment Communities, was unavailable Wednesday afternoon for comment. Both the land sale and the lease deal were brokered by Doug Beck of CB Richard Ellis.