CANNON BEACH (AP) — Investigators determined that a malfunctioning flue chase behind a natural gas fireplace caused the New Year’s Day fire at a popular Cannon Beach inn.

Fire marshal Mike Graham of the Cannon Beach Rural Fire Protection District says the fire at the Tolovana Inn spread along the flue chase from the second floor to the third and first floors. The basement sustained smoke and water damage.

The damage estimate from the three-alarm blaze is between $500,000 and $750,000. There were no injuries.

The inn at the south edge of Cannon Beach has five buildings. General manager Jim McDonald says the rebuilding of 24 damaged rooms has begun. The inn’s remaining 151 rooms are available for rental.