The robbery occurred early Sunday in the area between West Rosemary and West Franklin streets, near the rear entrance of Ham's, located at 310 W. Franklin St., said Sgt. Steve Riddle.
Reports state that police were notified of the incident at 5:13 a.m.
Chapel Hill police arrested Lanis Joyner, 24, of 100 W. Rosemary St. at 5:45 a.m.
Joyner was arrested at 310 W. Franklin St. about 30 minutes after the incident occurred.
Joyner was charged with one felony count of robbery and is being held on a $2,500 bond at Orange County Jail.
Riddle said the incident started when the suspects approached the victim, a man in his mid-20s, and demanded his money.
When the victim refused, a knife was presented and the suspects repeated their demand, Riddle said.
Once the victim gave up his wallet and address book, the suspects began battering him, Riddle said. The exact value of the stolen items has not been disclosed at this time.
"(The suspects) knocked him to the ground and assaulted him with their fists and feet," Riddle said.