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This vintage movie house—built in 1935 by Interstate Circuit Inc.—stands next door to the Paramount Theatre and within sight of the State Capitol building. It was built on the site of the old Avenue Hotel, which stood until after the turn of the century.

The State Theatre was the first theatre in Austin built specifically to show motion pictures and opened on Christmas Day of 1935 with The Bride Comes Home, featuring Claudette Colbert and Fred MacMurray. Downtown movie houses were popular during the era; the theatre screened films along with many others like The Paramount, The Queen—which stood on the west side of Congress Avenue—and The Ritz, now an Alamo Drafthouse location on 6th Street. The State flourished under the helm of Louis Noovy, a general manager for Interstate's four Austin movie houses, which included the Paramount, Queen and Capitol theatres.

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