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A pair of Denver-area Realtor organizations completed the controversial sale of REcolorado on Friday, separating ties between one of the nation’s largest multiple listing services and its previous owners, Inman has learned.
The closing capped off a tumultuous summer and fall for the groups involved in the sale, as news of the purchase was leaked to the media, threats between the MLS and some of its subscribers were made public, questions about the buyer arose and the closing hit apparent weeks-long delays.
REcolorado’s new owner is an entity called MAZL, LLC, which is registered to Joseph E. Burks. Burks is president of Equity Title of Colorado and an affiliate member of the South Metro Denver Realtor Association (SMDRA), one of two previous co-owners of REcolorado.
Joseph Burks
“We are committed to ensuring that REcolorado not only remains the foundation of Colorado’s real estate community but continues to set the standard for excellence and innovation as a subscriber-focused MLS,” Burks said in a statement. “Our goal is to collaborate closely with its exceptional team to strengthen the company even further, ensuring it continues to deliver MLS services that bring unparalleled value to its subscribers and their clients, adapting and innovating to meet the evolving needs of today’s real estate professionals.”
The sale creates a layer of separation between REcolorado’s 24,000 subscribers and entities that are affiliated with the National Association of Realtors. It may be a harbinger of future sales of multiple listing services in the U.S., as some in the industry are calling to separate the MLSs from Realtor organizations.
All of the shares in the MLS were owned by two shareholders: the Denver Metro Association of Realtors (DMAR) and SMDRA.
The group has said the sale to an outside party would protect its subscribers from ongoing antitrust litigation, pointing to “industry reports and media coverage.”
“This acquisition represents a pivotal moment in our mission to deliver exceptional value to real estate professionals across Colorado,” interim CEO Larry McGee said in a statement. “Under new leadership, REcolorado remains steadfast in its 40-year tradition of unwavering dedication to its subscribers while expanding our service capabilities.”
McGee and others from DMAR, SMDRA and REcolorado didn’t respond to Inman’s questions about the sale and apparent delays in its closing this month as the groups worked to keep a tight lid on the pending sale before it was finalized on Friday.
In statements it has made online, REcolorado said it remained committed to complying with the terms of the settlement agreement under the new ownership.
Others in the industry declined to comment in the weeks and days leading up to the sale, saying they were prohibited from doing so because they were bound by non-disclosure agreements.
The sale faced significant pushback from some, including members of the previous board of directors, two of whom said they had been in talks to buy the MLS.
“We started having conversations in November and December of last year” about buying the MLS, Alan Smith, broker-owner of RE/MAX Professionals and a former REcolorado board member, told Inman. Smith said that shortly after his group made an offer to buy REcolorado, “magically they have a competing offer” from Burks.
Smith wasn’t the only group to have a potential offer spurned by DMAR and SMDRA.
An Ohio-based software company called MRI Software also offered to buy the MLS after news of the potential sale became public. A spokeswoman for the firm told Inman on Friday that it never heard back from REcolorado after it submitted an offer.
REcolorado confirmed it had considered other offers.
McGee was assigned to the interim post after DMAR and SMDRA removed both the previous CEO, Gene Millman, and the entire REcolorado board of directors.
The MLS also put in place a transitional board of directors, whose members were split between executives of DMAR and SMDRA.
- Brendan Bailey, CEO of DMAR
- Jessica Reinhardt, past president of DMAR
- Melissa Maldonado, CEO of SMDRA
- Janet Marlow, past president of SMDRA
In a statement, the group said it would focus on remaining affordable for its subscribers; strengthening data security; and improving communication and policies.
“This transition represents an exciting new chapter for SMDRA,” Maldonado said in a statement. “With new ownership and management at the helm, we are confident that our members will continue to receive industry-leading technology and support, positioning them for success in an ever-evolving real estate landscape.”
“We are confident that MAZL, LLC’s extensive expertise and forward-thinking approach will bring significant value to the MLS platform,” Bailey said. “Their leadership promises to create exciting new opportunities for the real estate community, enabling us to better serve our clients and succeed during this pivotal time for the industry.”
