The custom-built road race bike was stolen Monday from outside a 24 Hour Fitness gym on Bovet Road and listed for sale on Craigslist the same day, according to San Mateo police.
The man who purchased the bike apparently recognized it was worth more than he paid, so he contacted a local bike shop and brought the bike in, police said. An employee recognized it and contacted police.
Detectives identified 35-year-old San Mateo resident Terrell Medley as a possible suspect, police said.
Medley was arrested Wednesday and booked into San Mateo County Jail for grand theft, sale of stolen goods and drug charges.
Police are reminding the community to take pictures of valuable property and record any information that could be useful if stolen, such as serial numbers.
Police should be contacted any time stolen property is spotted on Craigslist.