Bft Rental, LLC v. Arkansas State Highway Commission

2026 Ark. App. 73
CourtCourt of Appeals of Arkansas
DecidedFebruary 4, 2026
StatusPublished

This text of 2026 Ark. App. 73 (Bft Rental, LLC v. Arkansas State Highway Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bft Rental, LLC v. Arkansas State Highway Commission, 2026 Ark. App. 73 (Ark. Ct. App. 2026).

Opinion

Cite as 2026 Ark. App. 73 ARKANSAS COURT OF APPEALS DIVISION II No. CV-24-488

Opinion Delivered February 4, 2026

BFT RENTAL, LLC APPELLANT APPEAL FROM THE WASHINGTON COUNTY CIRCUIT COURT V. [NO. 72CV-23-1131]

ARKANSAS STATE HIGHWAY HONORABLE WILLIAM MARTIN, COMMISSION JUDGE APPELLEE AFFIRMED

MIKE MURPHY, Judge

Appellant BFT Rentals, LLC, appeals the denial of its motion for new trial. BFT

owned a piece of property running along Highway 112, which was condemned by the

Arkansas Highway Department through eminent domain as part of a highway-widening

project. We affirm.

The issue at trial was how much money to award BFT as just compensation. Before

trial, the Commission deposited $1,480,513 into the registry of the court, representing what

the Commission believed to be just compensation for the taking.

I. Summary of Trial and Procedural Posture

At trial, the jury heard testimony from Jessica Hester, an architect with Verdant

Studio, who was hired by BFT. She had started working on the project for BFT in October 2021 to create a master plan for its sixty-five-acre site, and she worked with the City of

Fayetteville to get four parcels rezoned. The rezoning was obtained in April 2022 and allowed

the land to be used for mixed-use development, “so it has both commercial and residential

by-right applications inside of it . . . intended to create space that services the adjacent

community.” She did not know the value per square foot or per acre.

BFT then called Jeff Pederson, a commercial real estate broker. Pederson testified that

he visited the site and prepared a listing-price opinion for the property in June 2022. He

explained that commercial real estate pricing is typically expressed in dollars per square foot,

and on the basis of his analysis, he valued the property at approximately $20 per square foot.

He said that this figure was “conservative” considering the market in the area. Pederson used

an income approach to valuation and supported his opinion with exhibits showing

comparable pricing for raw land at $20 per square foot.

Lee Autrey testified next. He was vice president of sales for a company owned by the

same owners of BFT. He testified that the owners valued their land at $20 per square foot.

He said he was not a real estate professional. BFT then rested.

The Highway Commission called one of its engineers to explain the Highway 112

project and introduced some aerial views of the property. It then called Jason Crump, a

registered licensed and certified appraiser. The company he was working for at the time, JLL

Evaluation Advisor Services, was contracted by the department of transportation in 2022 to

provide appraisal services for the Highway 112 project. He discussed his qualifications,

2 employment history, and experience and then explained how he went about valuing the land

at issue for his appraisal:

So we take a look at the subject, how it’s being impacted, and work through the process of -- of in this case using the sales comparison approach where we go out into the market. If you’ve had your home appraised, you kind of know the process. You go out in the market and try to find homes that are similar to yours and put a number on it. That’s what we did with this acreage tract.

Crump was qualified as an expert without objection. He discussed some of the elements of

the BFT tract and said, “It is in the path of [ ] what I would consider the future growth of

Fayetteville.” He testified about a tract right around the corner from the subject property. It

was similarly zoned, thirty-six acres, and the highway department acquired it for $3.50 per

square foot in 2022. He testified about another comparable property, albeit in Springdale,

but similar in nature, that sold for $1.72 per square foot in June 2022. A third property he

used sold for $2.00 per square foot in 2021. He testified that he calculated just compensation

to BFT for the property to be $1,480,513, which included $6460 in compensation for a

temporary easement to perform the work on the property. Crump said that amount comes

to “a little less than $3 a square foot” for the land purchased, and that calculation still

reflected his expert opinion today. He did not agree with Pederson’s valuation because “[t]his

property is not there yet . . . from a market standpoint,” and that a developer would not

currently buy the land at the price that Pederson recommended because the infrastructure is

not currently there. And while he acknowledged that he had “no doubt” that some properties

in Fayetteville are going for $15 to $16 a square foot, “I just don’t see it for [ ] this tract . . .

there’s not the residential mix there yet. It’s coming. It’s not there.”

3 At the conclusion of the evidence, counsel and the court worked through jury

instructions. Relevant here, the following were read to the jury:

Instruction Number 10. In arriving at the amount of just compensation to which BFT Rental, LLC is entitled, you first determine the fair market value of the whole property immediately before the taking, and then you determine the fair market value of the remaining property immediately after the taking. The compensation BFT Rental, LLC is entitled to recover is the difference, if any, between the fair market value of the whole property immediately before the taking and the fair market value of the remaining property immediately after the taking.

In determining the fair market value of the remaining property immediately after the taking, you should consider the remaining property as if the Arkansas State Highway Commission’s project was completed and permanently in place according to the construction plans now on file.

Instruction Number 11. When I use the expression fair market value, I mean the amount of money which a purchaser who is willing but not obligated to buy the property would pay to an owner who was willing but not obligated to sell it, taking into consideration all uses to which the land is adapted and might reasonably be applied. Fair market value is not necessarily based on the use to which the property was being put at the date of the taking, but is to be based on the fair market value of the land put to its highest and best use.

....

Instruction 16. BFT Rental, LLC also seeks just compensation for a temporary construction easement taken by the Arkansas State Highway Commission. The amount of just compensation for a temporary construction easement is the fair rental value of the property within the easement area for the time – or excuse me -- for the period of time it was or will be used.

The jury retired for deliberations. During deliberation, a note was sent out that stated,

“Do we have to choose one of the proposed amounts or set our own per square foot

amount?” Counsel for the highway department said they could set their own amount, and

counsel for BFT agreed. The court said, “So can I say, ‘No, you do not have to choose one

4 of the proposed amounts, you may set your own per square foot amount?’” Counsel for both

parties agreed.

The jury rendered the following verdict: “We the jury find and fix just compensation

for Tract 9 and easements on 9E-1, 9E-2, 9E-3, and 9E-4 to be awarded defendant BFT

Rental, LLC, et al, at $3.50 per square foot.”

The jury was dismissed, and the court and counsel for both parties discussed on the

record what amount that value per square foot calculated to when multiplied over the total

acreage condemned.

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2026 Ark. App. 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bft-rental-llc-v-arkansas-state-highway-commission-arkctapp-2026.