Surf's Up
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Once this quest is obtained through the Wherefore Art Thou, Mercurio? quest, leave Mercurio's pad and head into the parking ramp off to your right. Not far in, you'll need to make another right toward the Beach Access area, then descend some stairs before zoning out onto the beach itself.

As soon as you reach the beach, a woman will approach you and tell you where to find the thugs that beat up Mercurio - without you asking about their whereabouts. Apparently, she's a psychic of some sort and will even give you some cryptic advice if you ask for it. Just past her is a guy with no shirt named E. He'll give you directions on the thug's whereabouts as well, and seems surprised that you're not here to run him and his pals off the beach. Coincidentally, with enough Intimidate, you can assume such a role and extort $50 out of him, but you won't be making any friends doing so. If you choose a friendlier route, E. will explain that he and his pals are "Thin Bloods", which will trigger another quest called Thinned Blood.

When you're finished conversing, head through the chain link fence to your right and up the flight of stairs to the beach house on the cliff. As with many areas you'll be making your way through in the game, this beach house offers you the opportunity to complete the quest in a stealthy or combative method. The stealthy version is easiest to pull off if you go through the broken piece of fence and head to the back of the house, and the combative version will require you to hack through five total thugs, as well as a man dressed in white that presumably is the Dennis character that Mercurio mentioned. Whichever way you choose, you'll find the Astrolite on a table inside a room full of chemicals (which grants you 2 Experience as soon as you grab it). In the laundry room, you'll find an air duct that you can climb into where Mercurio's $250 is stashed and ready for the taking. Finally, a table in the living room offers a Car Stereo that you can grab for selling purposes.

Now that you have the Astrolite and Mercurio's money, head back down the stairs and return to Mercurio's pad. Telling him you retrieved the Astrolite will net you a point of Experience. If you also remembered to grab his money from the air duct, you'll receive another point of Experience. Next, Mercurio will ask you to lay waste to a warehouse being used by the Sabbat that will trigger the Explosive Beginning quest.

If your character has at least three points of Seduction skill... you can seduce your way through the guard in front of the beachhouse. Then, when you reach the room with Dennis, you can use Seduction to "pay" for the Astrolite in a more... intimate way. Once he dismisses the other muscle in the room, you can feed on him without fear of losing Humanity. This method of disposing of Dennis is available for female characters for sure, though I'm not sure if a male character can convince him to clear the room.