The teen was located on the 6200 block of Trotter Street around 2 a.m. Monday.
According to authorities, the teen was taken just before 11:30 p.m. Sunday.
Arriving officers were met by family members at a home on the 6600 block of Tabor Road.
Family members said they heard noise coming from the basement that sounded like a struggle. When they went down to see, the teen was gone.
RELATED: Philadelphia grief counselors in short supply with gun violence rising
Blood and three bullets were found outside the home, police said.
Family members also discovered a bullet hole in the basement, but said they did not hear a gunshot during the struggle.
The victim's vehicle was still outside the home, police said.
Philadelphia Police Chief Inspector Scott Small said investigators were able to locate the teenager by his cellphone.
"We were able to track the 17-year-old's cellphone to a property in the 6200 block of Trotter Street. When police went to that location, they declared it a barricade since we believed that this was an abduction point of gun," Small said.
Hostage negotiators and the SWAT unit arrived on location.
Small said they were able to speak to the occupants inside the home and soon after three people, a male and two females, all in their 20s, exited the property.
The 17-year-old was found inside the home.
Small said he was suffering from bruising to his face and head, bleeding heavily, and was in and out of consciousness.
The teen was taken to the hospital where he was reunited with his family.
Police said the teen was able identify all three suspects to officers at the scene. They were taken into custody.
Police don't yet know the motive, but believe the teen has a history with at least one, if not all, of the suspects.