Germand is at : 135, 112, 99. That is up from the dock and turn right, but there is no entrance near him. The entrance to the area he is in is at -276, 260, 99.
From the bank, head north and west through a door, then north down some stairs. Turn right and go up some other stairs, then turn to your left and there he is.
And for those who gripe about this reward being No Rent, consider fetching the bundle of wood and banking it. Then any time you know you're going to want the Elf illusion, just drop by Abysmal and turn the wood into the bauble. (Then you'll have to fetch more wood, of course, but if you can get to the axe the rest is pretty fast.)