When we last left Drake tenant Annie Morgan, she was being tortured by a man named Kandinsky. This happens to be the evil assassin she made up for a newspaper article. The notion that he is a product of Annie's imagination doesn't really fly with Kandinsky. He threatens to cut out the young journalist's eye unless she coughs up a name. Annie lies by saying her editor is the source. Kandinsky heads off to check out her story. If she's lying, he'll cut out both her eyes.
Gavin is under investigation for having inside information of several land deals. Henry's boss, Commissioner Pike, along with the A.D.A, want him to dig up incriminating files on Gavin. If he doesn't play ball, they'll destroy him. Gavin assures Henry that there's nothing to worry about regarding the investigation. He says that Pike is just using him and the guy has been lining his pockets with developers' dollars for years. Henry catches sight of the "Greenpoint Towers" development deal on Gavin's laptop. He's formulating a plan in his head. For the first time since they met, Henry and Gavin seem to be at odds with each other.
Annie manages to escape from her apartment, but is too late to save her boss. The guy is dead in an alley. Kandinsky calls Annie to let her know that she's next. Gavin assures Annie that he can make this bad man go away. He'll need her to write one final article first. It'll be a piece about the corrupt city planning commissioner. He assures her that no innocent lives will be lost and Kandinsky will never bother her again.
Henry sneaks into the Doran penthouse. He uploads the Greenpoint Towers file onto a flash drive. He also swipes a file on him and Jane. Henry sneaks out the fire escape when Olivia comes home, but quickly realizes he left the cap to flash drive on Gavin's desk. This has him truly concerned in the hours before big party at the mayor's house. Everyone who is anyone will be there including both Gavin and his boss, Pike.
Jane is trying to crack the combination lock on the suitcase she found in the basement. What she doesn't know is that the case is turning to the correct digits on its own whenever she's not around. She sees the little girl again who wants her to be quiet so "he" doesn't hear her. She looks over at the suitcase after saying this. Then she's gone. A freaked out Jane puts the suitcase on a closet shelf.
Nona receives a visit from her psychiatrist, Ingrid, who is slightly upset to learn that her grandmother isn't around yet again. The shrink also seems to have lost her sunglasses. Well, that's not quite accurate. Nona swiped them when she wasn't looking. Too bad Jane catches her wearing the evidence. She now knows that the Drake thief is Nona, who still swears that she didn't swipe Jane's grandmother's necklace. Nona has another vision when she touches Henry's watch. She warns Jane to keep him away from a man with a compass tattoo. The guy is dangerous. He's going to hurt Henry.
During delivery of some packages, Tony the doorman hears the bell of the suitcase ringing from inside Jane and Henry's apartment. He checks things out and opens the case. Black smoke floats out from its inside. The little girl watches in fear from underneath the bed. Moments later, Tony is back in the hallway outside of the apartment. It's as if he never went inside.
Annie sends the article on the corrupt police commissioner to her editor. Gavin assures her that Kandinsky will never bother her again. Still, Annie starts to freak when she realizes that she may have now put Pike's life in danger with the mob. At the mayor's party, Gavin lets Henry know that he's hip his latest play by handing him back the flash drive cap. Jane has no idea what's going on between the two of them until Olivia clues her in. Jane tells Henry to not let anyone intimidate him. He's his own man.
Henry lets Pike know that he has Gavin's file, but he's not turning it over to anyone. Moments later, cell phones are beeping throughout the party. Many guests are sent word of Annie's article. Speaking of Annie, she's crashing the party to try to warn Pike. Jane also tries to warn Henry that he's in danger when she sees a man with a compass tattoo draw a gun. It's Kandinsky. BANG! BANG! Shots are fired. Henry pushes Pike out of the way and manages to knock out Kandinsky. There is, however, one casualty. Annie Morgan is dead.
Back at the Drake, Henry lets Gavin know that he now truly believes that he's looking out for him. He tosses the flash drive into the fire without ever having looked at it. Jane thanks Nona for saving Henry's life. She offers to be her friend. Nona tells her catatonic grandmother that she thinks she's found someone she can trust. She later places Jane's grandmother's necklace on her apartment doorknob. After everyone has gone to sleep, the black smoke from the suitcase reappears. It begins to form into something. We ultimately see that the black smoke has taken the shape of a man.