This has been gone over several times. Below are some great links to help you with that.
http://moz.com/blog/40-important-local-search-questions-answered
http://www.localseoguide.com/seo-for-businesses-with-multiple-locations-in-the-same-city/
http://www.clickz.com/clickz/column/2283736/local-seo-strategy-for-the-multilocation-marketer