The effect was actually done using retroreflective tape; the building were indeed a physical model, with the edges covered in 3M Scotchlite tape. From first-hand experience (on other movies) the camera is placed behind a half-silvered mirror placed with a 45 degree tilt, with a projector underneath (in this case shining green light). The net result is the camera and projector are on the same optical axis, so no shadows are visible and because the tape (retro)reflects so strongly that's the only thing that shows up.
We used exactly the same technique on 'Superman', but projecting footage in sync with the camera and the most massive screen of Scotchlite behind the actors (it's must've been something like 200 feet wide and 50 high, so big we had to dig a curved trench several feet deep in the floor of Pinewood's A stage to fit it all in (my boss at the time won an Oscar for the flying FX).