The property holds an eight-building, 427,000-square-foot development. The unidentified buyer wants to redevelop the property with residential and has been seeking the necessary development approvals to make it happen. The contract price is $76.5 million.

In February, Berg said it was in the process of negotiating a 12-month extension of a buyer's option to acquire property on McCandless Drive for residential development. The buyer offered to pay $2 million for the extension on top of $10 million it had already spent on development plans and entitlements, he said. Milpitas' redevelopment director was not available Tuesday for comment.

"We are waiting for their [development] approvals to sign off on the deal and if they do not close they have agreed to turn over all their plans and approvals to us so we would be able to market it more easily," Berg said on the company's fourth quarter conference call in February. "It's very difficult to know if anyone will close in a market like today but they certainly have spent a lot of money and seem very committed to it."