The club, tentatively dubbed "Skye," is slated to open in the late spring to early summer of next year at 149 E. Franklin St., where Barr-Ee Station was formerly located.
Property owner Dan Markscheid said Skye will feature a first-floor dance area, a second-floor cocktail bar and a rooftop level that will offer patrons peace and solace.
Markscheid, who also owns Gotham and Alley Oops TreeHouse, said Skye would have its own unique atmosphere.
About 80 percent of TreeHouse's customers are UNC students, who also form the majority of Gotham's patrons, but Markscheid said Skye will cater to a slightly older age group.
"It will not be exclusively a student crowd," he said.
"I don't want people going in with preconceived notions."
Markscheid said the club will be aimed at an over-21 crowd but will offer entertainment for everyone ages 18 and above.
Skye will be the first ground-level club of its kind on Franklin Street, which Markscheid said will add to its appeal.
"When we open, I'm sure it'll be a big hit because of its location," he said. "We have a very nice reputation with the people in town."