Officials are calling this a significant fire.
Firefighters were experiencing problems knocking down the fire initially for about 20 minutes. They had to back out of the building because they were not able to put water on it.
Crews say there were some issues with power lines in the area. Dominion Power was called out to the scene as well. Power was cut to the two buildings next to the lounge and an animal hospital behind the building.
Fire crews are now putting out the flames and mopping up.
No injuries have been reported.
Stay with NewsChannel 3 for more updates.