The man, believed to have been involved in a home invasion in Vaughan, escaped into the Sheridan Mall.
Four other men were taken into custody.
The drama began when York Regional Police began chasing a sedan near Keele Street and Major Mackenzie Drive at about 11 a.m.
Police believed one of the people inside the sedan had been taken hostage during the home invasion.
Toronto police helped out and stopped the car on a road outside Sheridan Mall, near Jane Street and Wilson Avenue.
The man believed to be the kidnapping victim was freed.
Four men were taken into custody — but another suspect escaped.
"The one guy bolted as the three people were being taken down," said Adam Bodmora who witnessed one of the suspects flee. "The one guy just ran through all the cops — and they had their guns out — and he just ran as fast as he could."
Another witness said the victim was in the trunk of the sedan — naked and covered by a blanket. His leg was bleeding.
Police hunted for the escaped man and announced they had made an arrest late in the afternoon.
No names have been released.