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Two people allegedly spray-painted offensive graffiti, appearing to be swastikas, on the building and fence on Georgina Street in Newtown about 7.30am on January 11.
They also allegedly attempted to set the place on fire.
Police stormed two addresses on Pyrmont Bridge Road in Camperdown on Tuesday and arrested 33-year-old Adam Moule.
He was charged with property damage offences, possessing suspected stolen goods, and cultivating an illegal plant and remains before the court.
Today, police made their second arrest at a hotel on Pyrmont Bridge Road in Pyrmont.
Officers were forced to taser the 37-year-old man, who was assessed by paramedics before being taken to Day Street Police Station.
Investigations are continuing.
It is the 10th arrest under Strike Force Pearl, which was set up by counter-terror and special tactics officers in December to investigate hate crimes, focusing on antisemitic attacks, across Sydney.
The nine accused, aged between 19 and 40, remain before the courts.