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Looking at the 1948 ad, it seems the theater was located in the Rose City Community Building. Thanks to some nice local folks, I found out the location for the Community building is approximately where the Post Office is now. I would surmise that the the theater sat on West Main and was set back from the road, putting it where the Post Office sits now which is entered from the side street.
I went back through the historical aerials to the 1960's and it seems the old building was demolished before that. I would say it was built sometime after 1910 as there was an enormous fire at that time which wiped out most of the commercial district. I will use the post office address only for reference of where the actual community building sat. Special thanks to Rose for all of her help.