A police officer reported the fire at 5:30 a.m., according to Police Chief Vance Haskett.
The building was fully engulfed in flames.
The fire was contained to La Playa, but nearby businesses suffered smoke damage.
La Playa sustained severe damage, and may be a total loss, police say.
No injuries have been reported.
The fire has been put out.
Check back with NewsChannel 3 for more details on this developing story.