SALEM — The Peabody Essex Museum is buying three downtown properties as part of its $200 million expansion.
One acquisition is a downtown landmark: 179 Essex St., the home of Bernard's Jewelers.
The jewelry store will remain open, but as a PEM tenant.
"We're still in business," said Tom Tetrault, co-owner of Bernard's, who signed a purchase and sale agreement Wednesday. The terms were not announced.
The PEM also bought 173-177 Essex St., which is next to Bernard's and adjacent to the museum's Japanese garden. This historic building, site of the first Boys Club in America, is home to Witch Tee's and Turtle Alley Chocolates and was the longtime site of Gene Murray's dance studio, an upstairs tenant.
The three-story brick building at 173-177 Essex St. was purchased for $1,275,000, according to records at the Southern Essex Registry of Deeds.
The two storefront businesses on the ground floor will remain open.
The PEM also bought a property on the corner of Central and Charter streets, the carriage house at The Residences at Museum Place. This is a new building that went up when developers were converting the city's former police station to condominiums. It sold for $702,000.
The PEM said the owner of the condo approached them, and they agreed to buy the carriage house, which will remain a residence.
The PEM bought the two Essex Street buildings for several reasons.
The buildings "are immediately adjacent to our existing property, and we want to be good neighbors," said Josh Basseches, deputy director and chief operating officer of the PEM. "We don't want to have people more than necessarily subjected to our construction, and we have this very specific need for office space."
The PEM plans to put offices on the second and third floors of the buildings.
In November, the museum announced plans for a $200 million reconstruction and addition, larger than the new wing it added in 2003. During construction, many employees will be displaced from their offices.
Although the museum expects to complete this new project in 2016, it has not announced a start date.
Construction will take place on the side of the museum next to the Essex Street buildings and the carriage house.
Although the Japanese garden will remain, it will shrink to make room for the expansion.
While acquiring the Essex Street properties for office space, the museum wants to keep retail stores on the ground floor, Basseches said.
"Two things we're very interested in supporting are a thriving downtown and ... a thriving retail district," Basseches said.
Bernard's Jewelers was founded in 1934 by Raymond Tetrault Sr., the father of the present owners, and used to be next door at 173-177 Essex St. It sold that building many years ago to the owners of the former Lally's Shoes.
Tetrault said business has been good in recent years, thanks in part to the museum.
"Their expansion has been beneficial for us," he said. "The class of visitor they bring has been positive for us."
The Bernard's deal is scheduled to close in March.
The PEM owns two other buildings on the Essex Street pedestrian mall: 181 Essex St., which is on the other side of Bernard's, and the former L.H. Rogers building, which has become the museum office center.
Tom Dalton may be contacted at tdalton@gloucestertimes.com.
Stars Crowd Red Carpet for AmfAR
Knick's Anthony on NY Life, Linsanity, New Role
Zefron Gets Eroticised
Kristen Stewart 'On the Road' to Cannes
Mads Mikkelsen on 'The Hunt' in Cannes
Brad Pitt Dispels Wedding Date Rumors at Cannes
Gerard Butler: the Good, the Bad and the Cannes
ShowBiz Minute: Gibb, Billboard, Smith
Robin Gibb of Bee Gees Dies at 62
Raw Video: Will Smith Slaps Journalist
Wes Anderson Makes His Cannes Debut
Tony Nominee Josh Young on Judas Role in 'JCS'
Jaime King's Southern Belle Secrets
ShowBiz Minute: Summer, Gaga, Beckham
Fans Pay Tribute to Donna Summer
Glenn Frey on New Solo Record, Eagles
Disco Queen Donna Summer Dies at 63
Brooklyn Decker Talks Career and Gowns
ShowBiz Minute: Brown, Cannes, Monroe
The 'Men in Black' Are Back
