The owners of Modern Pastry in Boston’s North End have paid $5.5 million to purchase the property adjacent to its Hanover Street address and expand the company’s delectable operations.

Modern Realty LLC, which lists Modern Pastry owner John Picariello as its principal, purchased the 261-263 Hanover St. building with help from a $2.37 million mortgage from Rockland Trust Co., according to records from real estate analytics provider the Warren Group, publisher of Banker & Tradesman.

The pastry shop purveyor purchased the property from James Kelly and John Alvino, the partners that ran the now closed Piccola Venezia Italian restaurant at the site. The restaurant served customers for 32 years before closing.

Modern Pastry is feeling the squeeze as demand has only grown over time, with lines out the door of its small retail space on the weekends, as one reporter has witnessed on many occasions. The space contains some small tables, but not nearly enough for all the company’s patrons.