Nick grabs dance (3,4)
I believe the answer is:
cop shop
'nick' is the definition.
(both are slang for police station)
'grabs dance' is the wordplay.
'grabs' becomes 'cops' (cop can mean to grab or seize).
'dance' becomes 'hop' (hop is a kind of dance).
'cops'+'hop'='COP-SHOP'
(Other definitions for cop shop that I've seen before include "Police station (slang)" , "'Police station (3,4)'" , "Nick" , "office investigating crime" .)