Jay-Z's Atlantic City 40/40 Club Shuts Its Doors

'It was time to move on' after lease runs up and damage from Superstorm Sandy, spokesman says.

From grand opening to grand closing: Jay-Z's 40/40 Club in Atlantic City, New Jersey, has officially shut its doors.

A spokesman confirmed to a local newspaper that the club's lease was slated to end in October 2012. Then Superstorm Sandy hit at around the same time, causing substantial damage and factoring in to the decision to not reopen.

"There was a big hole in the roof as well," Ron Berkowitz of Berk Communications told The Press of Atlantic City. "With the end of the lease and with Sandy, we decided we had a great run, and it was time to move on."

Sandy was responsible for nearly $37 billion in damage throughout the state of New Jersey, Governor Chris Christie said back in November. Of the 24 U.S. states affected by the storm, Jersey and New York faced the most devastation.

The upscale 40/40 Club, one of several locations co-owned by Jay-Z, opened in Atlantic City in October 2005. It was lauded by city officials for helping the area's reputation extend beyond being a place to gamble.

A fight at the club in 2012 that left two police officers injured garnered negative press, and local DJ Faheem Davis shared with the Press of Atlantic City that the price to play was so high it kept locals out.

"It was the out-of-towners that would go to the 40/40 on a regular basis," Davis said. "It wasn't the local people. It was very expensive."

In September, Jay-Z celebrated the opening of a new 40/40 Club located inside the Barclays Center in Brooklyn, New York, home of the basketball team he also co-owns, the Brooklyn Nets.

A spokesman for Tanger Outlets said the real estate company was seeking new tenants for the Atlantic City space that housed the 40/40 Club.