It's really nothing special, just standard vertex based lighting and blended geometry.
Here's a screenshot of gunshots at night...
A guy standing under a streetlight...
The light seems pretty intense in this screenshot, I toned it down some since then...I'm still tweaking it all to get it looking right.
View from high above.
How the lighting looks on a car model, I've still got to add the headlights onto the cars.
I've still got some tweaking to do with the colors, any opinions are welcome :-)