Investigators say Marquise Foster, 25, turned himself into police.
Foster and another man are accused of shooting Victoria Carmen White last month in Maplewood.
Officials believe Foster met White at a nightclub and that she may have been killed because of sexual orientation.
Police are still looking for the second suspect; Alrashim Chambers, 23, from Newark.
Victoria Carmen White was born James White. She had completed gender reassignment surgeries and began living her new life as a 28-year-old woman.
White was shot dead September 12th inside a Jacoby Street apartment in Maplewood during an after party with people she had met earlier at a nightclub.
"I was reading the paper and I said, 'Oh my God, not another one,'" Leslie Farber said.
Farber, an attorney with Garden State Equality, says it's an ongoing battle trying to prevent violence against those who are gay or transgender.
"It's been going on so much for so long. It's got to stop. People have got to realize this is not acceptable behavior," she said
The Essex County Prosecutor is considering White's murder as a hate crime.
Maplewood's police chief says his force will aggressively pursue any offenses against the town's gay and transgender community.