WATSONVILLE, Calif. -

UPDATE 8/30/16 5:25 PM: Monterey Mushrooms caught on fire Tuesday morning and crews said the building was destroyed, along with the equipment in it.

Cal Fire said it started just before 8 a.m., and grey smoke was spotted coming out of the building.

There were no mushrooms inside the building at the time. However, Cal Fire said the building had just been remodeled and caused about $1.2 million in damage.

PREVIOUS STORY: Cal Fire said Monterey Mushrooms caught on fire Tuesday morning on Meyher Court in Royal Oaks.

Officials said at least one building was fully engulfed with flames about 500 feet. Two other buildings were also at risk of burning.

This article will be updated as more information is released.