Citas achieves EDGE certification for its Chrysler building, demonstrating its commitment to mitigating the effects of climate change as well as social equity.
Project Name | Chrysler Building |
Developer | IRR CONSULTORIA E SERVICOS ADMINISTRATIVOS LTDA |
Owner | Citas |
Location | São Paulo, Brazil |
Building Type | Residential |
Total Floor Area Certified | 9,058.53sqm |
Certification Date | December 2023 |
Savings achieved | Minimum of 22% Energy savings; 25% Water Savings, 91% Less embodied carbon in materials |
São Paulo’s Real Estate Complexities
The metropolitan area of São Paulo faces major challenges related to its residential landscape. Since 2008, the average rent has risen by 97% and average inflation has increased to 40%. It has become impossible for many families to keep living in the city. But it’s not only the residential sector that has faced problems. Downtown São Paulo, an area which used to be a bustling commercial sector, is now rife with vacant commercial buildings. Many of these mid-century modern structures are uninhabited and in a state of decay. The large number of vacant commercial properties signals an urgent need for retrofit in this region.
These issues were recognised by IRR Capital and Citas. Two companies committed to transforming the built environment in Brazil. IRR Capital, created in 2017, operates solely in the restructuring and management of real estate assets with complex problems. IRR developed Citas, a company further focused on retrofitting, restructuring and operating assets in São Paulo Downtown.
After identifying that São Paulo’s Downtown presents a relevant real estate problem, namely the large number of unused commercial properties, Citas began to dedicate itself to solving this problem through 3 pillars: retrofit changing the final use of assets from commercial to residential, assets management and lease management. Since Citas’ inception in 2018, the company has 3 buildings under renovation, representing close to 500 housing units for lease by 2024. One of these projects, the Chrysler building, located in downtown São Paulo was Citas’ most recent challenge.
Investment for good
After identifying the issues with the regions’ real estate, Citas began to look for investment channels to transform their visions to fruition. Collaboration with IFC offered a way forward as they were able to fund the EDGE certification of their projects. Citas also received a donation from the government of Japan on the condition that projects became EDGE certified.
Funding was also tied to initiatives to help migrants and refugees within the city. In 2018, around the same time that Citas began developing a strategy to transform São Paulo’s buildings, UNHCR and IFC partnered in Brazil to support refugees and migrants. IFC’s goal was to encourage private sector participation in the areas of employability, affordable housing, and financial inclusion.
UNHCR and IFC began collaborating with Citas in 2021. By helping Citas move forward, UNHCR found a new way to help refugees and migrants rebuild their lives in Brazil. Together with IFC, the São Paulo office of the international refugee agency launched the “Refuge in the City” project, a carpentry and hospitality job training program for refugees and migrants. Caritas Arquidiocesana de São Paulo, a local UNHCR implementing agency, selected the participants, supported course registration, and facilitated participation through stipends to cover transportation and food costs. The government of Japan also made it a condition of their financing that Citas engaged with this initiative.
Seventeen people from Venezuela, Cuba, Angola, Morocco, and Colombia took the three-week course led by Lab74, a woodwork and design school. All of the graduates received help finding job opportunities, and some, were hired by Citas to help manufacturing furniture and storage items in Chrysler building project.
Not only this, but through a partnership with IFC, the Chrysler Building will offer 3 to 5 percent of its apartments at a discounted rate, with sliding-scale rental fees to migrants and refugees, providing an affordable housing option for some of the city’s most vulnerable residents.
The retrofit journey
Once funding and partnerships had been secured, Citas were tasked with renovating their first building. Legislation in São Paulo mandates that owners of property that has been empty for more than one year must prove its use or it will be subject to incremental tax rates. This has expropriated 3 million unused square meters from owners and the proceeds from the sale of these properties have been invested into retrofitting other properties. Buildings that remain abandoned for more than five years can be sold by judicial orders and generate revenue for the state.
The Chrysler building, located in downtown São Paulo, spanning over 9,500 square metres of floor space, was a commercial building that was empty for more than a decade. Citas guided JIVE INVESTIMETS, an investment fund, to acquire the asset and managed the design of the project and the investment, as they identified the site as an opportunity to develop a residential development.
Citas was then challenged with the task to transform this derelict building into modern and energy efficient residential units. The renovation was quite a task, with the Citas team facing many challenges and changes along the way. The building itself was formally an office building and due to this many of the original building design features had to be changed. For instance, Citas’ original plan was to remove the floor finish from the original building and put a ceramic tile on top. However, as the floor finish was unable to be removed because in the process of removal it started to damage the subfloor, they decided to keep the original flooring, that was designed for a commercial space, with better traffic level in the flooring, saving financial resources and reusing the existing flooring. Changing and navigating the renovation was demanding for the engineers and architects who had to draw and redraw building designs as these changes were made.
Nevertheless, Citas were successfully able to transform the property into 283 furnished and affordably prices residential units. Once construction was completed, they certified the project with EDGE and received a minimum of 22% energy savings; 25% water Savings, 91% less embodied carbon in materials. Citas achieved EDGE certification installing a range of design features such as: energy efficient lighting and appliances, reflective exterior walls, water efficient showerheads, faucets and closest and reuse of the existing building materials. For new walls that were required in the building they used honeycomb clay blacks with plaster on both sides to reduce the embodied carbon related to the building materials. The building will save over 27 tons of CO2 annually.
“Though it may appear modest at first glance, incrementally improving the efficiency of natural resource usage on a daily basis can yield significant results. When considering the collective impact across 283 housing units over decades of use, even slight savings accumulate into a substantial conservation of resources” said Beatriz Vigiato, Head of Engineering, Citas República.
“The Citas certification didn’t entail significant additional costs for the project. Everything needed for the certification consisted of updates already planned for the building. The meticulous adherence to EDGE requirements was crucial in directing engineers and architects toward designing solutions and specifying products that met our performance standards. Our strategies encompassed the use of LED light bulbs, sensor-controlled lighting in corridors, reflective paint for the facade, low-flow sinks and showers, dual-flush toilets, and the repurposing of various building finishings during the retrofit.”
What’s Next?
This is just the beginning for Citas. After the success of the Chrysler building, Citas is moving forward with transforming more commercial properties into residential developments. They aim to certify their entire portfolio with EDGE certification, with a further building already in the process of achieving the certification. Citas strives to continue leading the way in the residential sector providing affordable and green housing spaces for Brazil’s residents.
“When we found out about EDGE Certification, we knew it was spot-on for Citas. It perfectly blends sustainability and financial responsibility, which are at the heart of our project. Working with IFC has been fantastic, and we’ve built a strong partnership. We’re proud to say that all our buildings will be EDGE Certified, showing our dedication to the environment across the Citas portfolio.
We are thrilled to say that the Citas República is the first residential retrofit that has received the EDGE Certificate in Brazil”
Isadora Rebouças, Founder and CEO, Citas República
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