UPDATE 5:19 p.m.: Alert Carolina has issued the "all clear" message.
UPDATE 5 p.m.: Chapel Hill police have confirmed a suspect is in custody. Sgt. Gabriel Shinn said police located the man on East Franklin Street.
"We’ve got a subject in custody. Everything is okay. The subject was brandishing a knife at one point and we were led to church on East Franklin Street.
"He was found and he is in custody right now," Shinn said.
UNC's Department of Public Safety reported an armed man on campus Sunday afternoon in an Alert Carolina message.