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The 1536 building was demolished about 2000 or so.
Current use is as part of the First National Bank office complex. The structure has a modern dark brick faÃ§ade, but the underlying theater structure is easy to see. Photo here: http://twitpic.com/15s37w
A possible location correction. I could be mistaken, but I think the Chelsea was located at 806 4th street (not west 4th), near where the convention center is located now. Back then it was a very seedy area called lower 4th, so the adult oriented Chelsea fit right in. The area has been significantly rejuvenated since then.