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The Roundabout has rented the Studio 54 building since 1998, when it relocated "Cabaret" from a nightclub on W. 43rd St. At that time, the Roundabout spent an estimated $1 million to $1.5 million fixing up Studio 54 to be the new Kit Kat Klub, the musical's fictional setting.

The Roundabout is the city's second-largest nonprofit theater, after Lincoln Center. It has 46,000 subscribing members and an annual audience of 700,000. The company has two other locations - the American Airlines Theater at 227 W. 42nd St., which it owns, and the Gramercy Theatre on E. 23rd Street, which it leases. After "Cabaret's" success, the Roundabout decided it wanted to buy Studio 54 for future musicals.

KRISTEN ARTZ LIFE IS A 'CABARET' The Roundabout Theatre Company, whose production of "Cabaret" is showing at the Studio 54 building, will use proceeds from city-backed bond issue for the purchase.

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Copyright Daily News, L.P. Feb 13, 2002