A bank that lent up to $21 million to build a luxury condominium tower at Smith Mountain Lake is moving to recover its money next week through a public auction of the complex that looms over docks and shops but has no residents.

The troubles at Bridgewater Pointe appear to run as deep as the cool lake off its shore -- adding evidence of distress in the lake real estate market.

The builder, English Construction Co. Inc. of Lynchburg, has filed a multimillion-dollar lien declaring that it, too, has not been paid. Various subcontractors have filed liens. And Franklin County real estate taxes are outstanding on the address, which is on Virginia 122 by Hales Ford Bridge.

The bank, Winston-Salem, N.C.,-based BB&T, appears destined to be the first to act on its claim of unpaid bills, having scheduled a foreclosure auction Wednesday for Bridgewater Pointe -- all 4 acres of land and the completed first of two planned towers.

"There will be a foreclosure sale on April 16," bank spokeswoman A.C. McGraw said Tuesday. She confirmed late Wednesday afternoon the event was still on.

The 48 completed condos some of the lake's 'nicest'

It's unclear who might show up to try to buy the complex or how much it will cost to own one of the most ambitious high-end condo projects the area has seen.

There are 48 completed units assessed at about $600,000 each, for a total of $28.8 million. The foundation for a planned second building with 48 more units has been poured.

In one respect, the finished tower appears loaded with potential appeal. It was well-built adjacent to the busiest waterside commercial center at the lake by some of the lake's experienced developers.

"It is probably one of the nicest condos on the lake," said Franklin County building inspector Jeffrey Scott, who scrutinized the materials and workmanship. Rumors of problems with the concrete are false; Scott said the concrete exceeded minimum specifications. "Quality construction," he added.

But evidence of financial difficulties is unmistakable in the fine print of a legal notice for the foreclosure auction that ran in the local paper.

This is by no means the first sign of real estate market distress. "The entire lake is slow," compared with better times such as in 2006, said longtime lake Realtor Audrey Agee.

Lake developer Ron Willard said Bridgewater Pointe appears ill-timed. "The condo market is very, very slow. There's probably 150 to 175 condos all over the lake that might be on the market," he said, not counting those at Bridgewater Pointe.

Edward Waters, a principal in the project, said he and the other condo backers are addressing the issue of the foreclosure auction.

"We're in negotiations," Waters said.

There was heavy preliminary interest in Bridgewater Pointe more than a year ago, at which time the company said "initial occupancy" would occur during the first quarter of 2007. Company officials said about 30 units were placed under contract.

But Franklin County real estate records showed Tuesday that all 48 units still belong to the development company that built them -- Bridgewater Pointe Partners LLC, whose members include Waters Edge Inc., of which Edward Waters is president, and Resource Capital Partners LLC, where John Mergner is listed as managing member.

Asked when the units will be available, Waters' son, Ryan, said earlier this week: "I can't give you a specific date."

If a buyer for one of the condo units were to come forward, "we would prefer they not close now until this negotiation is complete," the younger Waters said.

That said, the company's Web site continues marketing Bridgewater Pointe to well-heeled clients who can pay between $570,000 and $900,000 for a spacious pad overlooking the lake with amenities such as a swimming pool and clubhouse.

"Let yourself discover a new way of lake living," goes the signature pitch.

Developers can still act to avoid auction block

Bridgewater Pointe is an adjunct to the cozy commercial village near Moneta known as Bridgewater Plaza, popular for its restaurants, shops, live outdoor music and hungry carp that gobble popcorn tossed from dockside. Waters Edge owns it.

Vickie Gardner, executive director of the Smith Mountain Lake Chamber of Commerce, said the vacant tower has not had any noticeable effect on the plaza or tourism. "It's a beautiful spring. I can't think of a nicer place to be," she said.

Bridgewater Pointe has not been completely landscaped yet, so the piles of dirt may cause some to gather that the building is not yet open. In fact, Franklin County cleared the tower for occupancy on Feb. 12, Scott said, or some 60 days ago.

County records show BB&T has since early 2006 held the project as collateral to secure a debt up to $21.3 million incurred by Bridgewater Pointe Partners.

Demetri Tsanacas, a Ferrum College professor of business and economics, said the bank's resorting to an auction means Bridgewater Pointe Partners has not paid BB&T as agreed.

Another concern is the construction liens, which will discourage other banks from lending money to would-be purchasers of the units at Bridgewater Pointe, Tsanacas said.

To stop the auction, the developers will likely have to catch up on any missed payments and pay those contractors who have filed liens, Tsanacas said.

That suggests the possible need for an outside cash infusion.

"You're going to have to find somebody with money to come in there and bail them out," Willard said. While he added he is not interested in investing his assets, a bailout "could happen," he said.

Or, the bank could take ownership of the complex and sell the units itself, Tsanacas said. That may or may not be something the bank is not equipped to do or even interested in doing. BB&T would not comment.

Or, as an alternative to the auction, Tsanacas said the bank could offer the partners new terms. The bank's flexibility is not unlimited, however, because of its own capital requirements imposed by government regulators and monitored by rating agencies.

And it's not clear the two organizations are in a mood to compromise.

BB&T, some of the key Bridgewater Pointe developers and other individuals are embroiled in a separate legal case over another proposed project on the same peninsula as Bridgewater Pointe called Bridgewater Grande, which was approved in 2005 to include houses, town houses, condominiums, eateries and shops.

BB&T is alleging in a suit filed Jan. 8 in Franklin County Circuit Court that it has not received payment on a $7.2 million loan.

If the Bridgewater Pointe auction occurs, the auctioneer will open by asking for a bid roughly equal to what the bank is owed, Tsanacas said. If someone is willing to pay that, or more, the stage is set for the condo project to pass to them.

But for now, the condo tower faces an uncertain future, a move-in-ready gem complete except for somebody to live in it.