The 122,000-square-foot mixed-use development aims to attract innovation back to Chapel Hill’s urban core

Chapel Hill, NC – Global real estate advisor Avison Young has arranged a $26 million bridge loan on behalf of Grubb Properties to refinance Chapel Hill’s Innovation Hub, a newly renovated 122,000-square-foot (sf) mixed-use development with office and retail space – capital investment that will go toward reinvigorating innovation in the urban core.

The five-year loan from Bayview Commercial Mortgage Finance will repay Chapel Hill Innovation Hub’s existing construction loan and fund future capital needs.

Grubb Properties was represented by Hal Kempson, Principal, of Avison Young’s Capital Markets group.

“While the office market has faced headwinds in recent years, well-located, highly amenitized assets are securing capital investment as business leaders continue to prioritize state-of-the-art space to attract and retain talent,” said Kempson. “The Innovation Hub is a textbook example of this trend and will play a significant role in Chapel Hill’s evolution into a major hub for technology and research.”

Located at 136 E. Rosemary St. and 137 E. Franklin St., directly across the street from the University of North Carolina at Chapel Hill, the Innovation Hub aims to provide state-of-the-art office space in the heart of Chapel Hill’s urban core. It is part of the Carolina Economic Development Strategy, a collaborative effort between UNC-Chapel Hill and the Town of Chapel Hill to retain and attract innovation-oriented businesses and talent. The property has undergone significant renovations, including the installation of oversized windows that provide abundant natural light and panoramic views, a new façade to match neighboring buildings, a new lobby in 136 Rosemary, and parking deck improvements, among other upgrades to modernize the building.

Tenants at the Innovation Hub include Innovate Carolina, UNC-Chapel Hill’s central team for innovation and entrepreneurship; Launch Chapel Hill, a business and venture lab accelerator; and BioLabs, a co-working space with wet lab space for life science startups. Leasing efforts are led by JLL’s Hillman Duncan and Taylor McCuiston.

According to Avison Young’s Office Busyness Index, foot traffic in Chapel Hill’s office market has experienced remarkable recovery as employees return to the office. As of April 2025, Chapel Hill offices are 92.5% as busy as they were before the pandemic, well above the wider Raleigh-Durham market average of 55.5% and national average of 64.7%.