As reported in the New York Observer http://www.observer.com/2008/real-estate/nyu-drops-210-m-726-broadway, the NYU bought the building at 726 Broadway.
The building has been half rented by NYU and half vacant for years. Remember when Nobody Beats the Wiz had a store there? Years ago, ‘member? Well, that prime ground-level retail space with lots of Broadway foot traffic (McDonald’s is next door) has been vacant for a long while. That space will soon be occupied by NYU’s bookstore.