Police have been appealing for information on the whereabouts of Lynn, wanted over aggravated robbery and other alleged offences, since Tuesday.
A witness told the ODT nine police cars and a team of armed officers surrounded a house on Kaikorai Valley Rd around 5.30pm on Saturday.
After using a loudspeaker to communicate with those inside the house they led away a woman and two men, one of whom was believed to be Lynn.
Police said in a statement officers executed a search warrant at the address.
"Two men, age 27 and 33, and a 28-year-old woman were arrested on existing warrants to arrest and are expected to appear before the Dunedin District Court on Monday, January 12 on a number of serious charges, including aggravated robbery.
"Police thank those members of the public who shared information which assisted our investigation."
The Otago Daily Times understands Lynn, who has a distinctive "$" tattoo on one side of his face, was at the centre of a city-wide manhunt involving armed officers and road spikes on Thursday.
The manhunt took place after a string of vehicle thefts, including a courier van.
A second witness yesterday told the ODT they crossed paths with a man they too believed was Lynn on a platform at the Dunedin Railway Station, about 7am on Tuesday.
A New Zealand Post spokesperson confirmed the courier van — which was stolen from Outram on Thursday morning — was one of their vehicles.
NZ Post was co-operating with police and had started its own investigation.
They did not say whether any packages or mail had been stolen.
