It happened around 12:20 p.m. at the intersection of 10th and Tioga.
Police say two cars collided and it was one of those cars that slammed into the building.
The driver of one of the cars got out and ran but was stopped by an off-duty officer. No serious injuries were reported.
There were a number of toys in the yard where the car struck the building, which has a day care on the second floor, but no injuries to any children were reported.
However, the building was evacuated while L&I inspects the building.
There is no word yet on if anyone will be charged in this crash.