Gardaí said they received reports of a man entering a residence at Cox’s Demesne in Dundalk armed with a hammer at 6.30am on Friday.
The man is alleged to have threatened a female resident of the property and left with cash and car keys.
He then fled the scene in the resident’s vehicle.
No one was injured and there was no damage to the property.
A Garda investigation began and a man in his 20s was arrested a short time later.
The vehicle was recovered and the man was detained at Dundalk Garda station.
He has since been charged and will appear before Dublin District Court on Saturday.