Private firm completes controversial REcolorado acquisition
New owner aims to make Colorado’s largest MLS more subscriber-centric and simplify transactions as associations pledge “to create exciting new opportunities.”
A Colorado multiple listing service is now under the ownership of a private company.
REcolorado announced the completion of the sale to MAZL LLC, headed by Joseph Burks. Sale price figures were not disclosed in the Sept. 27 news release.
The new owner pledged to enhance services for real estate professionals using the MLS. REcolorado, the largest MLS in Colorado and 16th largest in the U.S., will retain its brand identity. The MLS had previously been owned by the Denver Metro Association of Realtors (DMAR) and South Metro Denver Realtors Association (SMDRA).
"As a market leader, REcolorado has always been at the forefront of delivering top-tier services," Burks said. "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."
Why the sale was controversial: The sale closes the book on what was a tumultuous acquisition. Having private instead of real estate association ownership potentially sets a new trend in an industry already shaken by buyer agent commission lawsuits and those policy changes enacted by the National Association of Realtors in August.
There was also some pushback from REcolorado leaders this summer when news of the pending sale leaked out. At one point MLS leadership offered to become self-owned, but the associations decided to go ahead with this sale while replacing REcolorado's board of directors and appointing an interim CEO. Association leaders also denied it would profit from the sale, saying the proceeds would go toward member benefits.
Burks appears to be focused on making REcolorado more subscriber-centric, creating market-driven policies and services based on subscriber feedback. Safeguarding subscriber listing data and providing tools that simplify real estate transactions are also stated priorities.
The association perspective: In the news release, the DMAR and SMDRA expressed confidence in the acquisition as the organizations separate themselves from the MLS, which has more than 26,000 subscribers.
"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," said Brendan Bailey, CEO of DMAR.