Brian Wayne Lewis, 35, was arrested on Sunday and charged with felony indecent exposure.
Authorities say Lewis was inside the Barnes and Noble bookstore on Friday when he exposed his private parts.
Parents in the little girl's neighborhood say they can't believe how something could happen so quickly when family members were nearby.
"That's scary," concerned parent Jennifer Lee said. "Usually in a bookstore, they're free to walk around and look at a book, you know, reading. Now you have to watch them every minute."
She says she feels the situation is even scarier once she learned of Lewis' past.
Records show Lewis has multiple indecent exposure convictions dating back to at least 1992. In December 2008, he was convicted of indecent liberties with a 14-year-old in New Hanover County.
After five months behind bars, he was placed on probation and ordered to a sex offender treatment class.
Now with the latest charge, authorities say Lewis will face probation violations for the exposure and for leaving New Hanover County where he's a registered sex offender. Lewis was not supposed to leave the county without telling his probation officer.
On Monday, a judge raised Lewis' bond to $100,000, placed him on house arrest, plus no contact with the alleged victim, and no contact with any child under the age of 18.
"I think that's good. I think the judge see that he's dangerous to the children," Lee said.
Raleigh police are looking into whether Lewis is a suspect in other cases. For now, they're asking for the public to call them if they have any information.