REColorado is the largest multiple listing service, or MLS, in the state. It’s set to be sold. (Stock image)
The two local Realtor associations that own the multiple listing service REColorado plan to sell the company, and have fired its board of directors and named a new CEO following media coverage and public criticism of the pending deal.
The Denver Metro Association of Realtors (DMAR) and South Metro Denver Realtors Association (SMDRA) said Friday that they have agreed to sell REColorado to MAZL LLC, an entity established specifically to buy it. Terms of the deal and a timeline for closing were not disclosed.
In the same announcement, the associations said they were “removing” all REColorado board members from their positions effective immediately.
The associations also later disclosed that Gene Millman, who had been CEO of REColorado since July 2020, was no longer in that position. Attempts to reach Millman for comment were unsuccessful.
A DMAR representative didn’t respond to a request for comment Monday.
Multiple listing services, or MLSs, are organizations that maintain databases of information about residential real estate listings that power public-facing sites such as Zillow. Real estate professionals such as agents and appraisers generally pay a fee to subscribe to MLSs, which were established to link agents representing sellers and agents representing buyers.
DMAR and SMDRA said in a statement last week that now, in the wake of high-profile industry settlements over agent commissions, is “the right time” to sell REColorado.
“Decoupling MLSs and realtor associations could help protect MLS organizations from ongoing antitrust litigation,” the associations said. “Separating could also improve MLS management, according to the latest Swanepoel Trends Report, which also recommended that MLSs be structured as for-profit businesses, while Realtor Associations should be nonprofit organizations.”
News of the pending sale of REColorado, which is Colorado’s largest MLS, was first reported by industry publications — including Housingwire and Inman — early last week. Some of that coverage included denouncements of the deal by REColorado board member Shelly Vincent.
“The terms of this deal scared the absolute hell out of us,” Vincent, whose LinkedIn profile identifies her as market leader for HomeSmart, told Real Estate News.
Vincent told Inman that REColorado leadership had been trying to buy the company back from the associations themselves when they learned that MAZL’s officer was being accepted.
“As of February, we had already accepted their counter when all communications involving the sale went silent,” Vincent told the publication. “We had no idea there was another party this involved.”
Vincent and six other board members, including chair Mark Trenka of Century 21, did not respond to requests for comment from BusinessDen late last week and Monday. Board members David Barber and Heather Hankins declined to comment, citing restrictions on speaking publicly.
In an unsigned statement last week, REColorado said: “While we support a vision for decoupling the MLS from Realtor association ownership, selling your most valuable tool to a private equity firm is a questionable way to achieve that and may bring added uncertainty.” (DMAR and SMDRA say MAZL is “not a Private Equity Firm, but a private company.”)
DMAR and SMDRA said Friday that the board members were removed for violating confidentiality agreements regarding the deal. Four of the 11 board members had already resigned prior to the removal, according to the associations, which did not name the individuals.
One of the former board members — Larry McGee, owner of Novella Real Estate — is now serving as interim CEO of REColorado, according to the associations. He did not respond to requests for comment on Monday.
Four new “transitional” board members have also been named to oversee REColorado. They are the associations’ two CEOs, Brendan Bailey and Melissa Maldonado, and two past presidents, Jessica Reinhardt and Janet Marlow.
In announcing the pending deal with MAZL LLC on Friday, the associations said the entity was led by managing member J. Burks, whom it described as “a leader in the real estate industry for more than 40 years.”
BusinessDen was unable to reach Burks for comment. In a statement released by the associations, he said MAZL was “dedicated to ensuring that the MLS remains a trusted, broker-focused, true partner that subscribers can rely on.”
REColorado is the largest multiple listing service, or MLS, in the state. It’s set to be sold. (Stock image)
The two local Realtor associations that own the multiple listing service REColorado plan to sell the company, and have fired its board of directors and named a new CEO following media coverage and public criticism of the pending deal.
The Denver Metro Association of Realtors (DMAR) and South Metro Denver Realtors Association (SMDRA) said Friday that they have agreed to sell REColorado to MAZL LLC, an entity established specifically to buy it. Terms of the deal and a timeline for closing were not disclosed.
In the same announcement, the associations said they were “removing” all REColorado board members from their positions effective immediately.
The associations also later disclosed that Gene Millman, who had been CEO of REColorado since July 2020, was no longer in that position. Attempts to reach Millman for comment were unsuccessful.
A DMAR representative didn’t respond to a request for comment Monday.
Multiple listing services, or MLSs, are organizations that maintain databases of information about residential real estate listings that power public-facing sites such as Zillow. Real estate professionals such as agents and appraisers generally pay a fee to subscribe to MLSs, which were established to link agents representing sellers and agents representing buyers.
DMAR and SMDRA said in a statement last week that now, in the wake of high-profile industry settlements over agent commissions, is “the right time” to sell REColorado.
“Decoupling MLSs and realtor associations could help protect MLS organizations from ongoing antitrust litigation,” the associations said. “Separating could also improve MLS management, according to the latest Swanepoel Trends Report, which also recommended that MLSs be structured as for-profit businesses, while Realtor Associations should be nonprofit organizations.”
News of the pending sale of REColorado, which is Colorado’s largest MLS, was first reported by industry publications — including Housingwire and Inman — early last week. Some of that coverage included denouncements of the deal by REColorado board member Shelly Vincent.
“The terms of this deal scared the absolute hell out of us,” Vincent, whose LinkedIn profile identifies her as market leader for HomeSmart, told Real Estate News.
Vincent told Inman that REColorado leadership had been trying to buy the company back from the associations themselves when they learned that MAZL’s officer was being accepted.
“As of February, we had already accepted their counter when all communications involving the sale went silent,” Vincent told the publication. “We had no idea there was another party this involved.”
Vincent and six other board members, including chair Mark Trenka of Century 21, did not respond to requests for comment from BusinessDen late last week and Monday. Board members David Barber and Heather Hankins declined to comment, citing restrictions on speaking publicly.
In an unsigned statement last week, REColorado said: “While we support a vision for decoupling the MLS from Realtor association ownership, selling your most valuable tool to a private equity firm is a questionable way to achieve that and may bring added uncertainty.” (DMAR and SMDRA say MAZL is “not a Private Equity Firm, but a private company.”)
DMAR and SMDRA said Friday that the board members were removed for violating confidentiality agreements regarding the deal. Four of the 11 board members had already resigned prior to the removal, according to the associations, which did not name the individuals.
One of the former board members — Larry McGee, owner of Novella Real Estate — is now serving as interim CEO of REColorado, according to the associations. He did not respond to requests for comment on Monday.
Four new “transitional” board members have also been named to oversee REColorado. They are the associations’ two CEOs, Brendan Bailey and Melissa Maldonado, and two past presidents, Jessica Reinhardt and Janet Marlow.
In announcing the pending deal with MAZL LLC on Friday, the associations said the entity was led by managing member J. Burks, whom it described as “a leader in the real estate industry for more than 40 years.”
BusinessDen was unable to reach Burks for comment. In a statement released by the associations, he said MAZL was “dedicated to ensuring that the MLS remains a trusted, broker-focused, true partner that subscribers can rely on.”
