The sheriff's office received a call at about 2:55 p.m. Wednesday reporting a possible burglary in progress in the 1900 block of Calaveras Drive, near Willow Pass Road, Lee said.
Moments later, the sheriff's office received a second call from someone inside the house reporting that a man was dead.
When deputies arrived, they found Sanchez's body. He had been shot multiple times, Lee said.
Detectives identified 30-year-old Prudencio Rubio as the suspected shooter and began searching for his yellow Ford Escape sport utility vehicle.
Investigators believe the killing stemmed from an ongoing dispute between Rubio and Sanchez, Lee said. He said he could not release information about the nature of the dispute because the investigation is ongoing.
Soon after the search for Rubio's SUV began, a deputy spotted it on state Highway 4 near state Highway 242 in Concord and requested assistance.
Deputies tried to stop Rubio, but he allegedly fled, Lee said. California Highway Patrol officers joined the pursuit and chased Rubio from Concord to Pittsburg and back to Concord.
Near the Highway 242 and Port Chicago Highway exits, CHP officers deployed spike strips, CHP officer Tom Maguire said.
He said that up to three of the SUV's tires popped, but Rubio still didn't stop. Instead, he turned around and drove the other way.
Throughout the pursuit, Rubio periodically pointed a gun at his head, Lee said. He finally returned to the 1900 block of Calaveras Drive in Bay Point at about 4:45 p.m.
Rubio stopped his SUV in the middle of the street on Calaveras Drive, was surrounded by officers, and again put the gun to his head, Lee said.
The sheriff's office hostage negotiation team talked to him for about an hour, trying to get him to surrender.
At about 5:45 p.m., Rubio turned himself in. He was arrested and taken by ambulance to a hospital to be examined, Lee said.
During the chase, a Concord police officer shot at Rubio's SUV near the Highway 242 off-ramp at Grant Avenue, but didn't hit him, Lee said.
Rubio did, however, shoot himself in the leg at some point. Lee said he sustained the gunshot wound before the Concord officer shot at him.
During the standoff, county emergency officials issued a shelter-in-place order for nearby residents.
Rubio has been arrested on suspicion of murder, evasion and weapons charges. His bail has been set at $1.15 million.
Investigators are planning to bring the case to the district attorney's office on Friday.