Efrem Demery was taken into custody Saturday evening and booked Sunday morning on suspicion of murder, a Los Angeles Police Department spokesperson said. He was being held without bail.
The fire occurred Saturday morning at a single-story commercial building in the 3700 block of North Cahuenga Boulevard, near Lankershim Boulevard.
The flames in the 50-by-75-foot studio, called Top Notch Studios, were extinguished by firefighters within 30 minutes.
"I could have died," said singer-songwriter L.A. Pryce. "If I wasn't in the light sleep that I was, I could have died. Period."
One of the deceased victims was identified by coroner's officials as 28-year-old Devaughn Kemar Carter of Los Angeles. The other deceased man's name was not released.