The Anchorage police SWAT unit on Friday arrested the man accused of murder in the fatal shooting at the Dimond Center last month.

Terence Clyde Gray, 28, was taken into custody in a mobile home in Muldoon about 11 a.m. after a woman who recognized him from pictures in the media called police and reported she'd seen him staying at a mobile home in the 7500 block of Boundary Avenue, according to police.

"We followed up on that. We had some SWAT people that were on duty and we gave the call over to them," police chief Mark Mew said at an afternoon press conference Friday. "They made entry into the mobile home and were able to arrest Mr. Gray."

Gray has been charged with first-degree murder in the death of 29-year-old Edwing Matos. The arrest warrant set his bail at $1 million.

Police say Gray and Matos planned a meeting at the Dimond Center on Feb. 27 to settle a dispute over property that was stolen from Matos a few days earlier.

Someone had burglarized Matos' home, stealing a PlayStation, some video games and cash, and Matos believed Gray was the culprit, according to police.

They spoke several times by phone before the meeting, during which Gray wore an Afro wig and fake facial hair and carried a .40-caliber handgun, according to police.

The pair sat on a bench for several minutes in the South Anchorage mall -- talking calmly, according to witnesses -- before Gray pulled out the gun and shot Matos, who was unarmed, in the head and body, police said. Gray fled the scene in a 1989 Chevrolet Suburban, which was recovered a few days later being driven by someone else.

The home Gray was found in Friday was not a location police had previously associated with Gray, and it wasn't immediately clear what his connection to the home was.

Other residents at the home were being interviewed but had not been arrested.

"We are in the process of talking to everyone," said Sgt. Slawomir Markiewicz, supervisor of the homicide unit. "That's something that has to be investigated: whether they were aware of his identity, whether they were aware of the fact that we were looking for Mr. Gray."

Later in the afternoon, detectives were still serving search warrants on the property, seeking additional evidence in the shooting, he said.

Police said Gray is due in court today for an initial appearance. The case is slated to go before a grand jury next week.