With an R$ 75 Million Investment and a Retrofit Approach, Vila 11 Launches Multifamily Project in São Paulo, Brazil

The company, which already has seven multifamily developments, is betting on retrofitting for a more sustainable project with reduced costs
The project is under construction and is expected to be completed in the second half of 2025

Jorge Moraes, operation director of Vila 11

By: SiiLA News

10/29/2024

Vila 11, a multifamily development company, is investing R$75 million in its first retrofit project on Berrini. Before the acquisition by Vila 11, this asset, delivered in 1997, was office space with a total leasable area of 5,528 square meters, spread over eight floors with average floor plates of 691 square meters.

Now, as a multifamily property, the development will offer 132 units with one and two-bedroom options, ranging from 32 to 70 square meters. According to Vila 11, the building will feature 24-hour reception, a pool, gym, party room, coworking space, communal laundry, pet place, pet wash, and a market. The project is expected to be delivered in the second half of 2025.

Jorge Moraes, Vila 11’s operation director, highlights that the development will stand out in the company’s portfolio, not only for the quality of the units and amenities, like the pool, gym, and apartments—rare in the area, according to the executive—but also for its location. Berrini is one of São Paulo’s main CBDs, known as a business hub that connects Chucri Zaidan to Vila Olímpia and offers public transportation, shopping, and services.

Data from SiiLA indicate that Brazil currently has 10,440 multifamily units across 76 towers. Subscribers to the MULTIFAMILY module of the MARKET ANALYTICS platform can now access data and analysis for Q3 2024.

Growing Interest in Retrofits

Retrofit is a development approach that consists of a complete overhaul and modernization of abandoned and/or deteriorated buildings. In major cities with limited land, retrofitting has become a viable solution for investors looking to create modern properties in urban centers.

Moraes emphasizes Vila 11’s role in retrofitting and its commitment to sustainable urban development and construction. "It’s a sustainable strategy because it minimizes construction material waste and carbon emissions associated with demolition and new building construction. The retrofit practice offers key benefits for sustainability and energy efficiency," he states.

The model is being increasingly adopted by companies like Brookfield, which announced in September the acquisition of five buildings in downtown São Paulo for multifamily use.

Read more: Companies Double Down on Brazil, Converting Commercial Buildings into Multifamily Residential Properties

Santander has already pioneered the banking sector in facilitating credit for this model. In 2022, the bank created a credit line exclusively for retrofit projects, with over R$60 million spent so far.

Recently, Giancarlo Nicastro, CEO of SiiLA, attended an AMCHAM conference at the Commercial Association of Rio de Janeiro’s auditorium, where he presented studies on Rio’s corporate real estate market. During his presentation, Nicastro noted that retrofitting is being used by companies as a solution to revitalize Rio’s downtown and highlighted completed projects in São Paulo.

Read more: Revitalization of Rio de Janeiro’s Downtown is the Focus of Giancarlo Nicastro’s Panel at AMCHAM Event

Other Multifamily Projects

Disclosure

Vila 11 has seven other multifamily projects, including Alameda Itu, a class A development with 3,904 square meters, and Bela Vista, also class A, with 4,185 square meters.

Track the performance of all assets and the multifamily market with SiiLA’s MARKET ANALYTICS.

Read more: Luggo Mansões and Paraíso da Vila 11: Successful Multifamily Examples in Brazil

Latam

Brazil

São Paulo

Multifamily

Market Analytics

Development

ABOUT SiiLA

Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.