Fire crews were first called to the 700 block of Warren Avenue North just before 8:30 p.m. after getting a host of 911 calls about a structure fire.
When they arrived, the crews saw flames shooting 40 feet into the air and realized the blaze was spreading to two neighboring homes, according to Kyle Moore with the Seattle Fire Department.
David Lewis was walking home when he first saw the fire. As he got closer, he realized his house was engulfed in flames.
"It puts everything into perspective, because things you worry about or thought were big are trivial," he said. "I'm glad everybody is ok. The only thing I'm really worried about memories, pictures and photos."
Because of the heavy smoke, fire officials asked residents to stay away.
"This is kind of toxic smoke, and you don't want to be too close to breath this stuff, so I really suggest people stay out of the smoke area and stay home," Moore said.
Despite those warnings, dozens of neighbors gathered near the homes to watch the firefighters at work.
"Wow, the flames are spitting out the side of the house. This place is engulfed. I hope everyone's alright," said one man who lives in the area.
Residents in all three of the multi-story homes were able to get out safely, and Moore said there are no reported injuries.
Firefighters will stay on Lower Queen Anne throughout the night to monitor any hot spots.
It's still unclear what caused the fire.