Good vibes at The Vistas

PATERSON — With bottles of white wine chilling in ice buckets, city officials and developers popped the cork on the city's first luxury community, which is opening in the midst of a real estate market that is awash in unsold units and foreclosures.

On Wednesday, developers of The Vistas at the Great Falls unveiled the first of a 12-building, $36 million residential community on the edge of the cliffs of the Great Falls. Participants were treated to glasses of wine after the ceremony.

The condominiums, which range in price from $294,500 to $350,000, offer sweeping views of Paterson and, on a clear day, the outline of Manhattan's skyline. The development will have an outdoor pool and a community center.

"We really kicked it up a notch with a lifestyle, a pool and a fitness center," said Mayor Jose "Joey" Torres during the small ceremony. "I want one of these."

Although Torres said that "yuppies who want this lifestyle" or empty-nesters downsizing would buy the 120 units, the opening coincides with a housing crisis in which financing has gotten much tighter and people are still losing their homes.

Officials at P&F Management Co., the developers of the Vistas, say they are "bullish on Paterson," but a recent look at another high-end development in the city could portend a difficult time for the Great Falls project.

In May 2007, Preservation Partners opened a $4.3-million, 20-unit condominium building on Market Street in a rehabilitated mill. The units, offering loft-style living, were listed for between $195,000 and $412,000 last year.

Today, according to Rich DePetro, the principal at Preservation Partners, the company has not sold one unit, even after a 15 percent cut in the most expensive apartments.

"We still have them for sale. However, we started a program of renting them just because the market is kind of soft," DePetro said. "(Financing) was the major problem."

George McLoof, another developer of refurbished mills in Paterson, was succinct in describing the local real estate market.

"Awful, to put one word on it," McLoof said.

Still, developers of The Vistas at the Great Falls say that their price range and the amenities they offer will draw interested buyers to the project.

On Wednesday, city officials toured the building, which has 10 units. Company officials showed off the newly installed granite kitchen counters, the walk-in closets in the master bedrooms and balconies that overlook the city.

"I know how scary the market is there with higher-priced homes, but we've been really pleased with the traffic we've seen so far at our price level," said Debbie Bertino, vice president of sales for the Hillside-based company. "It's not just selling a home. Anyone can sell a home, but it's selling a lifestyle here."

So far, three buyers have put down deposits in the first building, and the company will start construction on the other buildings as they sell off existing units.

Next spring the company will start building a 96-unit project off Ryle Avenue, which, with another development, will result in a $150 million investment in the city, according to Glen Fishman, managing partner in the company.

"We're very, very bullish in Paterson," Fishman said Wednesday.

And, local officials are hoping that Fishman's strategy and confidence will work.

"This will truly be a jewel and make Paterson a destination," said Rep. Bill Pascrell Jr.

Reach Alexander MacInnes at 973-569-7166 or macinnes@northjersey.com.