SMITHFIELD - The Howell Theatre, a Smithfield institution, has changed hands. Its owners, new and old, say the cinema is still a profitable business and an anchor for downtown.

Chuck Kirkman said he and his family paid just north of $500,000 for the South Third Street building and business, which has operated since the 1930s. Kirkman, a transplant from New Jersey to Wake Forest, will keep charging $2.50 per ticket for second-run movies.

"We were looking for something to kind of get us grounded into the community in the Carolinas," said Kirkman, who moved south two years ago but still works in New Jersey.

Of late, quite a few hopefuls have staked their claim in downtown Smithfield -- both Off the Hook Oyster Bar and Cinema Café opened right next to the Howell recently.

But in a time of strip-mall theater palaces with 3D projectors and seat-rumbling sound, why spring for the old Howell?

Well, apparently it's a good business bet. Mickey Buffaloe, the theater's last owner, said switching to a second-run model in 2004 let him compete with new multiplexes and even grow his revenue.

Plus, despite a few shuttered businesses, Kirkman thinks Smithfield has the population and interest to support the cinema.

"The numbers look much better than the empty buildings suggest," said Kirkman, who bought the theater only after snooping as a customer and meticulosly studying the business's books and the growth and unemployment rates for Smithfield.

"Maybe I'm being optimistic here -- the downtown's coming back, and the businesses are starting to thrive again," he said. "It's not just going to be the strip malls and the outlets that are the anchor that is Smithfield."

Chris Johnson, director of the Downtown Smithfield Development Corp., called the Howell the "crown jewel" of Smithfield and said that many towns would love to have a downtown theater for the foot traffic it draws.

"It's open every night; it's open every day," Johnson said. "There are very few businesses that I'm aware of that can do that."

Kirkman, 53, will have his brother David run the theater day-to-day for now, and the whole family, including two kids, will pitch in on weekends.

Buffaloe, also 53, said the theater's revenue grew under his watch, but that it was taking too much out of him while life had grown more stressful. "I just can't do everything," he said. "I've invested almost 11 years into it."

Kirkman said the only changes to the four-screen theater would be behind the scenes. He wants the theater to be a family-friendly place for a cheap night out, he said.

"I want to emulate what he's been doing there and grow the business," he said. "It's risk, but it's manageable risk."