Across from Radio Shack and catty corner from Chick-fil-A, not only Picasso but other great masters such as Marc Chagall, Salvador Dali and Claude Monet share wall space with original Looney Tunes cels and drawings.
Associate Director Gregory Lacks pointed out that many collectors see animation as a work of fine art.
"It can almost hold its own with fine art," Lacks said.
Animation and Fine Art Galleries seeks to serve clientele interested in either ends of the spectrum, from Pluto to Pissarro.
"Overall, you're looking at two different groups of people. Rarely will someone want a Dali and a cel of Mickey Mouse," Lacks said.
About 60 percent of the gallery's clients come from out of state, and roughly 30 percent of these are international.
Animation and Fine Art Galleries operates from Chapel Hill in part because of rent and overhead costs much lower than those found in New York, Los Angeles or London.
And it is the only gallery in North Carolina that sells original works by the masters. Unlike many galleries, which display pieces by local artists procured for free, Animation and Fine Art Galleries purchases its works and must show them until they sell.
The gallery's special exhibitions are "The Gift of Art" and "The Grinch, Bugs Bunny and Marvin the Martian."