The neighborhood was built on the Llanos de Balbuena, land previously owned by the Braniff family, a bourgeois family living in the country (Alberto Braniff, the first aviator of Latin America, was a member of it).[1] In 1908, the government of the country acquired 72 ha (180 acres) of land. The government considered creating a cemetery in the area, but since it was located far from the city center, the idea was discarded. After the end of the Mexican Revolution, around 1924, a prison was considered for construction. Instead, employees of the Secretariat of the Interior bought the land (then known as Cuatro Árboles) to build a neighborhood exclusively for civil servants.[2] On 24 October 1924, president Álvaro Obregón authorized the sale but regretted that despite its size, the site was not large enough to accommodate all the employees. Construction began on 8 February 1925 and eight days later the neighborhood was officially founded.[2]
In the middle, there is a roundabout (officially the Plaza del Poder Ejecutivo) with a culture center named Poliforum Cultural Colonia Federal.[2] In front of it, there is the Our Lady of the Sacred Heart Church (Parroquia de Nuestra Señora del Sagrado Corazón), which was built in 1962.[2]