Once the party returned to Grimcrest manor the Wand of Secrets began to vibrate, they followed the wand directions to a wine cellar which turned out to be a trap of spikes. The party discovered a secret basement which had been turned into a temple of Asmodeus with a female Tiefling in the middle of the chamber casting a spell. After a few rounds of combat the Tiefling teleported out of the temple.
The party decided to rest for the evening before questioning Lord Grimcrest since they learned he was away on business until the next day. The next morning the party went back to the hidden temple and found that it was now a normal storage room. The party ventured out into the city.
While in the city they also returned to the butcher shop that was a summoning chamber for Asmodeus cultists. Which now is just a normal busy shop.
The party made their way to the City of the Dead using the secret tunnel provided by Xanathar. Once in the graveyard they contacted Melvyn Wake, an elderly Dwarf groundskeeper. Who explains to the party that recently the grass near a mausoleum has become peculiarly muddy and smells distinctly of rot. Melvyn is too scared to investigate further and brings the party to the area in question.
In the mausoleum they find stacks of bodies. All the bodies are branded with a symbol of Asmodeus. The party is attacked by a wondering Dread Warrior and Ghouls that are among the dead bodies.
The party makes their way out of the City of the Dead and goes to city hall in order to find out more information about Horace Grimcrest. Once they return to the Manor, they question Lord Grimcrest about the open lord of Waterdeep since She has closed the city of the dead without reason.
Lord Grimcrest informs the group that Lady Laeral Silverhand the current Open Lord of Waterdeep is hosting her annual Open Lord Ball and he has been invited and tells the party they can attend as his guests.
Once at the Ball they make their way through the crowd and are able to get face time with Lady Silverhand, as the party is discussing why she closed off the City of the Dead Lady Silverhand introduces them to her advisor and personal friend Lady Arronal the same Tiefling that attacked them in the basement temple at the Manor.