Police suspect the attack was directed toward a car owned by a company which provides security guards.
“I was awakened by a huge noise at about seven o'clock. Then I heard all the glass crashing loudly. I saw a white cloud out on the street,” said Surbrungatan resident Ann-Charlotte Edmar.
No one was injured and damage to the vehicle was minimal.
The area was cordoned off by police as the police's bomb technicians investigated the damaged vehicle, a Volvo XC 90.
Several hours later, police arrested the 29-year-old in central Stockholm.
“The person who usually drove the vehicle had made a statement and we're investigating that information further. But we don't want to discuss anything about our suspicions because we need to conduct the investigative work free of distractions,” said police spokesperson Towe Hägg.
In addition to the 29-year-old, two others were brought in for questioning.
“But they are not suspects,” said Hägg.
The Aftonbladet newspaper reported that the car which suffered the alleged bomb attack is owned by Bevakningskompaniet, a security guard company.
The company's manager Tomas Broman confirmed to news agency TT that the car belonged to Bevakningskompaniet, but said little else.
“I have no idea if it's some sort of gang or some crime syndicate. It could be anything,” he said.