Instructions
Speak to Lola at the start of Chapter 3. She will give you the mission to recover her stolen stuff. Go to the Tenements section, the apartment block in the extreme northeast of the map.
Snipe the greasers from afar with your Super Slingshot while making your way to the top. This will help you to avoid most fights with individual enemies. When you make it to the top, you'll confront Norton. Avoid his sledgehammer strikes by shooting him from afar with Bottle Rockets.
Take the sledgehammer once you defeat Norton and go through the building, striking the cracked walls. These walls will be destroyed, revealing Lola's stolen stuff.