(STMW) — A man was arrested and charged after police said they found guns, drugs and cash at an Austin apartment building that houses a daycare in the basement.

Keith Lee, 52, is charged with two counts of unlawful use of a weapon for possessing or using a firearm on parole, one count of manufacturing or delivering30 to 500 grams of cannibas, one count of possession of 30-500 grams of cannabis and one count of possession of 500 to 2,000 cannabis, according to a statement from Chicago Police.

On Friday, the police Narcotics Division set up surveillance at a two-flat building in the 1600 block of North Monitor Avenue and saw a drug transaction between Lee and another male, police said.

Lee then got in to his vehicle and drove off, police said. Officers curbed his vehicle shortly after and arrested him about 2:50 p.m.

Search warrants were executed for the building, and officers found two guns, a scale, narcotics packaging, about $2,700 cash and close to1,360 grams of marijuana—worth an estimated street value of $20,000, police said.

Lee, of the same block police observed him in, is a self-admitted gang member and convicted felon, police said.

He will appear in bond court Saturday.

(Source: Sun-Times Media Wire © Chicago Sun-Times 2014. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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