BOSTON -- A massive seven-alarm blaze in downtown Lawrence that burned at least 14 buildings on Monday is being considered suspicious, officials said.

The fire near the intersection of Parker and Market streets started at about 2:30 a.m. Monday and destroyed an entire city block of apartments, garages and commercial space. One of the buildings destroyed was a home for special needs residents.

"This has escalated to 14 buildings, 26 occupied units, two commercial occupancies. We also have a program here for mentally challenged individuals, and we just lost this building," said Lawrence Fire Chief Peter Takvorian.

Almost 200 residents, many wrapped in blankets wearing just pajamas and slippers, were forced from their homes into the bitter cold early Monday morning. About 40 people were left homeless by the fire.

"The house was completely burned by the time we woke up. The Millennium Club was completely engulfed in flames and the walls were falling down. That is the noise we heard," resident Santos Aceredo said.

Officials said the fire started in the empty Millennium Club building and quickly spread to nearby structures.

"It was an unoccupied nightclub that was being renovated. That is where this fire started. An ambulance company going by noticed flames on the second and third floors," Takvorian said.

Investigators said the fire is considered suspicious.

"We are looking at this very closely as a suspicious fire. State police assigned to the fire marshal's office and (the Bureau of Alcohol, Tobacco and Firearms) are all joining together in initiating a fire investigation that will go on from this time forward," Massachusetts State Fire Marshall Stephen Coan said.

"Absolutely it is suspicious. We have a task force here. We investigate every suspicious fire in this city," Takvorian said.

Officials said freezing temperatures and frozen hydrants hampered their attempts to fight the fire. With most of the wooden, triple-deckers standing just feet apart, the stiff wind easily spread the flames and embers, eventually engulfing the entire block. After more than four hours and help from 10 fire departments, crews finally contained the blaze just after daybreak.

"It is a very difficult fight right now. We are fighting water pressure losses and a pretty good wind, cold temperatures," Takvorian said.

"Frozen hydrants, frozen lines, slip and fall, a multitude of weight on everything -- wires, telephone poles," one firefighter said of the conditions.

At least one person was taken to the hospital to be treated for smoke inhalation. No other injuries were reported.

"We are just happy to be alive and everybody else that got out. This is all material that can be replaced -- but the lives cannot," resident Diana Legro said.

"(Firefighters) told us to get out because there was a fire. When I was going out through the window, I saw that there as a fire in the house and on the house," said resident Darlenny Morrabel, 10.

Lawrence Building Inspector Greg Arvanitis said some of the buildings that did not burn were also damaged.

"They may have mild damage, smoke, water. And from what I am gathering, about five or six buildings down Market and Springfield Street are in question," Arvanitis said.

Some of the buildings destroyed had just undergone extensive renovations.

"Behind the night club were three buildings that were recently renovated by Habitat For Humanity. We had given occupancy permits for one of the buildings, and the other two are still under construction," Arvanitis said.

Lawrence officials said this is the worst fire they can remember in the city.

"I've never seen a fire like this in Lawrence. I have lived here pretty much all my life. Back in the 1980s when we had a lot of single-dwelling fires, or structure fires, it was kind of spread out. But nothing to this extent that I have seen," Arvanitis said

The Red Cross and Lazarus House is helping displaced residents, and a shelter has been set up at the South Lawrence East Elementary School. The Red Cross urged people to donate money, not clothing or other items to the fire victims.