Azo Inc. Sells 97% of A Noite Building to Brookfield, Betting on Multifamily Model to Revitalize the Iconic Property

The initiative to buy and sell A Noite originated from Brookfield, reveals José Albuquerque, CEO of Azo Inc., in an exclusive interview with REsource. He explains that André Lucarelli, Brookfield's Senior Vice President of Investments, initiated the negotiations, which lasted about three months. 

“It’s important to note that we didn’t sell the development, the business, or the asset itself. We sold autonomous units. For us, it was like selling 434 units at once, but to a single player,” stated the executive, who will retain 13 apartments in the asset.  

Brookfield and Azo Inc. share a vision of valuing Rio de Janeiro. Both companies have future projects in the city and see significant investment opportunities, especially in the downtown area. Currently, the region has a vacancy rate of 33.3% in Class A+, A, and B office spaces, with a net absorption of 10,982 square meters recorded in the last quarter, according to data from SiiLA’s Market Analytics platform. 

• Read more: Occupancy Rates Rise for Premium Offices in Downtown Rio de Janeiro

José Albuquerque highlighted the potential of Rio’s downtown area for residential developments. “The region has around 32,000 inhabitants, and over the last four years, 9,500 residential units have been launched. It’s a location with enormous development potential, capable of attracting more people, businesses, services, and, consequently, safety,” he explained.

On the topic of safety, Albuquerque acknowledged the challenge of public perception. “There’s this ‘phantom’ idea that downtown isn’t safe, but the reality is that it’s predominantly a commercial area that empties at night. When there’s residential presence, as proposed by Mayor Eduardo Paes, you bring life and, consequently, safety. We believe Rio’s downtown will truly transform the city in the next five years.”

• See also: Revitalization of Rio de Janeiro’s Downtown is the Focus of Giancarlo Nicastro’s Panel at AMCHAM Event 

Last year, Azo Inc. acquired the A Noite building with plans for a retrofit estimated at R$188 million. The project is part of the city’s “Reviver Centro” program, which aims to promote urban, cultural, social, and economic revitalization in the downtown area, attracting investments and new residents. Azo Inc. will continue leading the execution of the works, which are expected to be completed by 2027. 

In addition to residential use, Brookfield’s project includes spaces for restaurants and shops, a 360-degree observation deck overlooking downtown, a replica of Rádio Nacional’s auditorium for public visitation, and a Walk of Fame honoring the artists who marked the radio station’s history.