Built in 1926 as the Palace Theater by R and R Theaters and designed by Palestine (Texas) architect Maffitt, the theater was updated in 1929 with a name change and remodeled in 1936 with the Moderne vertically banded front replacing the original classical facade. Dallas-based Harold B. Robb and E. H. Rowley built R and R theaters across three states and also operated the Best/Ritz Theater on the south side of the square.
The three-story former bank nearby at S. Waco and E. Elm, built between 1905 and 1911, has diffused glass in the upper sash of third-floor windows, a sign that spaces inside were used to class cotton with the aid of shadowless north light.