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Officers observed the alleged transaction around 6:30 p.m., Sunday, Aug. 7, on North Forest Park Avenue, according to Baltimore police.
As officers observed the transaction, they noticed a visible handle of a handgun peeking out of the suspect's satchel, investigators said.
When detectives approached the suspect, he dropped the satchel and immediately ran from the scene before being apprehended by officers.
Investigators did not release the name of the suspected drug dealer or charges, which are pending.
Officers were able to recover the satchel and its contents, including a loaded 9mm handgun, and took the suspect into custody, police said.
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