The mayor of Paterson said that the boy was found safe and the suspect, Junior Nunez, is in custody.
Police say little Zander Abad was last seen in a vehicle on Piercy Street in Paterson.
The toddler was believed to have been taken by Nunez, who appears to be his mother's ex-boyfriend.
Authorities had reason to believe he was headed to New York City, and watched nearby roads for the missing boy.
But just before 5:30 a.m., a large number of law enforcement officials descended on the intersection of Presidential Boulevard and Temple Street, just blocks from where the boy was reported taken.
The Amber Alert was sent at around 1:36 a.m. and woke up many in North Jersey. It was sent a second time at 1:45 a.m. and a third time around 2 a.m.
It is rare for an Amber Alert to go out that often.
The Amber Alert for the child was canceled around 6 a.m. on Friday.
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