It happened near the location at the intersection of Platt Avenue and Victory Boulevard Friday afternoon.
Video obtained by Eyewitness News shows officers chasing the man seen holding a large knife.
He reportedly ran toward the McDonald's where several teens were eating. You can hear several of them screaming in the video.
"Across the street we see this guy holding like a big knife and he's running across the street like going toward me and my friend," said Paxton Huynh.
Several officers chased the suspect before they were finally able to subdue him in the parking lot. The knife was recovered.
It's unclear what sparked the incident, but no injuries were reported.
The suspect, who has not yet been identified, was taken into custody shortly after.
A woman who said she was the man's grandmother said he suffers from mental health issues and needs care.
The incident remains under investigation.