Joseph Burks purchased the 16th largest MLS in the country on Friday, buying shares from the Denver Metro Association of Realtors and the South Metro Denver Realtors Association.
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A pair of Denver-area Realtor agencies completed the controversial sale of REcolorado on Friday, severing ties between the nation’s largest listing services and its previous owners, Inman has learned.
The closure capped a tumultuous summer and fallout for the parties involved in the sale, as news of the purchase was leaked to the media, threats between MLS and its other subscribers were made public, questions arose about the buyer and the closing song. a delay lasting many weeks.
The new owner of REcolorado is an entity called MAZL, LLC, which is registered to it Joseph E. Burks. Burks is there president of Equity Title of Colorado and associate member of the South Metro Denver Realtor Association (SMDRA), one of the two former owners of REcolorado.
Joseph Burks
“We are committed to ensuring that REcolorado not only remains a cornerstone of the Colorado 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 work closely with its exceptional team to strengthen the company even further, ensuring it continues to deliver MLS services that deliver unparalleled value to its subscribers and clients, adapting and innovating to meet the changing needs of today’s real estate professionals.” “
Marketing creates a layer of differentiation among REcolorado’s 24,000 subscribers and businesses affiliated with the National Association of Realtors. It could be an indication of the coming sale of multiple listing services in the US, as some in the industry are calling for the separation of MLSs and Realtor associations.
All shares in the MLS were owned by two shareholders: the Denver Metro Association of Realtors (DMAR) and SMDRA.
The group said the third-party sale would protect its subscribers from ongoing antitrust lawsuits, citing “industry reports and media coverage.”
“This acquisition represents an important moment in our mission to bring exceptional value to real estate professionals in Colorado,” interim CEO Larry McGee said in a statement. “Under new leadership, REcolorado maintains its 40-year tradition of unwavering commitment to its subscribers while expanding our service capabilities.”
McGee and others from DMAR, SMDRA and REcolorado did not respond to Inman’s questions about the sale and the apparent delay in closing this month as the groups work to quell fears of a pending sale before it closes on Friday.
In statements made online, REcolorado said it remains 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 before the sale, saying they were prohibited from doing so because they were bound by non-disclosure agreements.
The sale faced significant backlash from some, including members of the previous board of directors, two of whom said they were in talks to buy MLS.
“We started having discussions in November and December of last year” about buying the MLS, Alan Smith, owner of the RE/MAX Professionals dealership and former REcolorado board member, told Inman. Smith said that shortly after his team made an offer to buy REcolorado, “magically they had a competing offer” from Burks.
Smith wasn’t the only party that could have had an offer rejected by DMAR and SMDRA.
An Ohio-based software company called MRI Software also offered to buy MLS after news of a possible sale became public. A spokesperson for the company told Inman on Friday that it had not heard back from REcolorado after it submitted the proposal.
REcolorado confirmed that it has considered other offers.
McGee was appointed to the interim position after DMAR and SMDRA fired both the previous CEO, Gene Millman, and the entire REcolorado board of directors.
The MLS also put in place a reform board of directors, whose members are split between DMAR and SMDRA management.
- Brendan Bailey, CEO of DMAR
- Jessica Reinhardt, past president of DMAR
- Melissa Maldonado, SMDRA CEO
- Janet Marlow, former SMDRA president
In a statement, the group said it will focus on whether it can pay subscribers; strengthening data security; and improving communication and policies.
“This change represents an exciting new chapter for SMDRA,” Maldonado said in a statement. “With new ownership and management in place, we are confident that our members will continue to receive industry-leading technology and support, positioning them to succeed in the ever-changing real estate environment.”
“We are confident that MAZL, LLC’s extensive experience and forward-thinking approach will bring significant benefits to the MLS landscape,” said Bailey. “Their leadership promises to create exciting new opportunities for the real estate community, enabling us to better serve our clients and thrive at this critical time in the industry.”
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