(CNN) One person has been confirmed dead after a huge fire engulfed and destroyed a building Tuesday in the Brazilian city of Sao Paulo, according to state-run news agency Agencia Brasil.

The dramatic fire broke out on the fifth floor of the 26-story building, which collapsed in a fireball an hour and a half later, according to the Brazilian Civil Defense.

Seven other buildings were evacuated in the surrounding area. The blaze started at 1:36 a.m. Tuesday, according to a Sao Paulo Fire Department spokesman.

The building was owned by the federal government and had previously been the headquarters of the Federal Police. At the time of the fire it was abandoned from commercial use but occupied by low-income families who were part of the Front for Fighting for Housing, a social organization that advocates for fair housing, Agencia Brasil reported.

City authorities had been negotiating with the group to vacate the building since February, Sao Paulo City Hall said. In March, City Hall had registered 400 people living in the building.

Read More