KEENE, N.H. (MyKeeneNow) A fire that started in the basement of a downtown Keene commercial building early Wednesday morning caused more than $40,000 in damage but was contained before it could spread into occupied business spaces above, according to the Keene Fire Department.

Firefighters were initially dispatched just before 2 a.m. after a report of a smoke odor in the area of Main Street near Margaritas, according to a news release. Crews located the smell of smoke but were unable to immediately determine where it was coming from.

While searching the downtown area, fire personnel discovered fire alarms sounding at 21 Roxbury St. Investigators found heavy smoke on the building’s first floor and smoke coming from the basement at the rear of the structure, the release said. A commercial structure fire response was requested at about 2:30 a.m.

Upon entering the building, firefighters found an active fire burning in the basement of 21 Bar & Grill, located within the three-story mixed-use building. Additional personnel and mutual aid departments were called in as crews worked to prevent the fire from spreading.

Firefighters advanced hose lines into the basement from the rear of the building and quickly brought the flames under control. The rapid response kept the fire from extending into the restaurant, retail and office spaces located on the upper floors. Search crews checked the building for occupants and signs of fire spread, and no injuries were reported.

The building, which dates to 1900, contains more than 16,000 square feet of commercial space, including offices, retail businesses, restaurant operations and storage areas.

After extinguishing the fire, crews remained on scene conducting overhaul operations and ventilating smoke from the structure. Firefighters were also working to notify business owners and tenants affected by the incident.

The Keene Fire Marshal’s Office has begun an investigation into the origin and cause of the fire, which remains under investigation.

Mutual aid assistance and station coverage were provided by numerous regional departments, including agencies from New Hampshire and Vermont, along with Cheshire County Ambulance.

Preliminary damage estimates exceed $40,000 and include smoke damage affecting businesses above and adjacent to the area where the fire originated.