A software development environment (SDE) and a method of compiling integrated source code. One embodiment of the SDE includes: (1) a parser configured to partition an integrated source code into a host code partition and a device code partition, the host code partition including a reference to a device variable, (2) a translator configured to: (2a) embed device machine code, compiled based on the device code partition, into a modified host code, (2b) define a pointer in the modified host code configured to be initialized, upon execution of the integrated source code, to a memory address allocated to the device variable, and (2c) replace the reference with a dereference to the pointer, and (3) a host compiler configured to employ a host library to compile the modified host code.