An investment fund run by the real estate firm Related Beal struck a New Year’s Eve deal with Fidelity Investments to purchase five buildings in downtown Boston that once served as the business epicenter of the giant financial services firm.
The buildings covering a stretch of Devonshire and Congress streets near Post Office Square contain 343,000 square feet of office and retail space spread across more than an acre of prime real estate known as the Block. The financial terms of the deal were not disclosed.
Adam Banker, a spokesman for Fidelity, said the company put the block up for sale in March.
One of the buildings, 82 Devonshire Street, served as Fidelity’s Boston headquarters until the company announced last year that it was moving to 245 Summer Street.
Banker said the space is currently used as offices for about 500 Fidelity employees, some of whom will be moved to the new headquarters and an office in the World Trade Center next year. The company will continue to occupy some space in the downtown buildings until 2015.
Stephen Faber, executive vice president of Related Beal, said the firm intends to “extensively renovate and reposition” 82 Devonshire and another building at 35 Congress Street and create “dynamic office space with 38,000 square feet of marquee, desirable retail space available for delivery in late 2015 or early 2016.”
The buildings were purchased by the Related Real Estate Recovery Fund, which closed in January 2012 with $825 million in equity commitments. The fund has also invested in 100 Arlington Street and Lovejoy Wharf in Boston.