Residents were urged over loud speakers to lock their home doors and windows, and to call police if they saw the suspect.
Moments before being stopped by California Highway Patrol officers, Hsu said the parolee burglarized Orchard Supply Hardware store on Foothill Boulevard in La Crescenta.
Los Angeles County sheriff's deputies were investigating the burglary.
He was speeding, so a patrol officer tried to pull him over, Hsu said, initiating the pursuit.
At some point during the pursuit, the suspect hit another vehicle at La Crescenta Avenue and Foothill (210) Freeway, officials said.
The parolee, whom authorities did not immediately identify, was driving north on Sycamore near Cloud where he pulled into a driveway, parked and fled on foot, Hsu said.
After the pursuit, police said he told the officer he had a gun and would shoot him.
Stolen goods from the hardware store were found inside the parked vehicle, Hsu added.
Residents in the neighborhood immediately pointed out the suspect's direction, and police set up a perimeter, Glendale Police Lt. Ian Grimes said.
After warning residents to remain indoors, police dogs were brought in to aid in the search as officers advised the suspect over a loud speaker to surrender.
Residents in the Sycamore Oak neighborhood watch group also received e-mails from their block captain about the police activity and were asked to be on the lookout, Grimes said.
"This is what we want to see," he said.
The parolee was described as a white man, in his 30s, clean shaven and heavy set, Hsu said. He was wearing a black T-shirt and jean shorts.