Housing Diversity Corp. has closed debt and equity for a new multifamily residential development at 9201 Delridge Way SW in West Seattle.

The Keystone development, slated to replace an auto repair shop, calls for the construction of a new five-story, 45,000-square-foot building featuring 74 apartments above 4,200 square feet of ground-floor commercial space. All of the apartments are to be priced for households earning at or below 80 percent of the area median income level, including 15 deeply affordable units created through Seattle's Multifamily Tax Exemption program.

Atelier Drome is designing Keystone, while STS Construction is serving as both co-sponsor and construction partner.

Project financial partners include First Fed, the senior lender which provided a $5 million loan, Nuveen Green Capital as the Commercial Property Assessed Clean Energy & Resiliency (C-PACER) lender, providing a $9.74 million loan, and Citizen Mint, a private markets platform for wealth advisors, which raised $5.18 million of equity funds.

Use of the C-PACER program affords debt at below market rates for projects which exceed code standards relating to energy use and other resiliency measures. In the case of Keystone, the seismic, plumbing, and thermal standards met by the project will allow 40 percent of overall costs to be covered by C-PACER financing, with a construction loan interest rate in the mid-7% range.

A groundbreaking for the project is expected within two months.