The fire broke out at Sal's Deli at 226 Gramatan Avenue at around 1 a.m., ripping through nearby stores and causing the collapse of the three-story apartment.
Twelve people have been displaced, according to WABC-TV. There have not been any injuries reported.
The Mount Vernon Fire Department cut power in the vicinity, resulting in the closure of nearby Mandela High School.
Firefighters from Yonkers and Pelham are assisting in battling the blaze.
Check back to Daily Voice for more on this developing story.
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