The suspect, identified as Marcellus Jones, has been charged with murder and related offenses.
Police say Jones shot and killed 23-year-old Beau Zabel on June 15, 2008.
Surveillance video obtained by Action News days after the shooting showed Beau buying a soda from a vending machine at Washington and Passyunk as he was returning home from his job at Starbucks.
Moments later he was fatally shot in the neck.
Police say Zabel was killed over his iPod.
"Here's a young guy, comes to the city, he's looking forward to his future, and he gets shot and killed in a robbery," John Apeldorn of the Citizens Crime Commission said in a 2008 interview.
Zabel had recently moved to Philadelphia from Minnesota.
A $20,000 reward was being offered in the capture of the suspect. It is not yet clear if anyone will receive this reward.