Go into the Elven Alienage and walk up to the large gathering. You should be able to talk to Shianni and learn about the plague. It seems that the Tevintar are running a bit of a “clinic”. Agree to investigate and move down the back alley.

click to enlarge
There's just one guard covering the rear entrance. You can either bribe him, scare him off, or kill him. Either way, unlock the door and go inside. There are a few warriors inside. This shouldn't be too tough. Just stay close and grind through them. Once that's done, loot the room for some gold and check the side office. There are some elves in a cage here. Go ahead and set them free and make sure that you also grab the note. It seems that there is a slavery ring in place.
If you go back outside, the front door guards will attack. They unfortunately have a lot of room to fall back and use magic, but standard anti-mage tactics will work just fine. Don't worry if some elves turn hostile or die in the fight.
Talk to Shianni again and she'll point you toward the run-down apartments behind the hospice. Go back there and use the key to get inside. You can interrogate an elf to learn about the latest raid. You should also check the rooms here, since one of them has the Free Sailor Sextant that's required for the Chanter's Board quest, Fazzil's Request.
If you pick the lock on the last door you can kill a few guards for easy experience.
Once you're done inside, go out into the alley. There are another few guards here. The archers are a little annoying but your mage should be able to counter them. The door at the end will lead us to the slaver's loading area.