More than a dozen people were seen being detained after the raid, sitting on the curb with hands cuffed behind their backs.
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Neighbors tell Eyewitness News that new tenants moved into the red-brick building in the 1700 block of West 134th Street about a month ago.
Since then, people were seen coming in and out of the building at all hours of the day and night.
One man told Eyewitness News he had been inside the building just the night before the raid.
"It's like a casino," said Shamil Harvey of Las Vegas, adding that people learn about the operation through word of mouth.
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Another neighbor reported hearing multiple explosions during the early-morning police raid, likely flash-bang grenades used to stun people as SWAT officers moved in.
Police did not release more detailed information about the raid or if any arrests were made. The investigation is ongoing.