The shooting was first reported around 5:25 p.m. at 202 West Lincoln Ave., Orange police say.
Officers confronted the active shooter and an officer-involved shooting occurred.
The suspected shooter was in custody and transported to a hospital in unknown condition.
People say the four people who were killed included one child. One person who was injured was transported to a local hospital.
At least two bodies could be seen outside the building, one on a second floor walkway and one in a courtyard.
At the scene there were bloody clothes and what appeared to be a weapon as officers investigated.
Information about the suspect has not been released.
Witnesses reported hearing two distinct sets of shots - one apparently the initial shooting and one the gunfire exchange involving police.
"I was just in my room hanging out. All of a sudden I heard five to seven gun shots go off," one neighbor said.
"And then I waited a couple minutes and the police came. And I heard a few more gunshots go off. It was a lot, quickly. Then the helicopter showed up and it was silent after that.
"We thought it was a car backfiring at first. Then it became louder and quicker and we knew it was not. It was quick gunfire shots."
Orange police say it was that city's deadliest shooting since 1997.
In December of that year, a 43-year-old former Caltrans worker who had been fired shot and killed four of his former coworkers at a state maintenance yard and then was killed by police in a gun battle.
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Orange, Calif. shooting: 4 killed in shooting at Orange building, suspected shooter hospitalized - KABC-TV
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