New FAQs from the MLS and its current owners, DMAR and SMDRA, clarify the post-sale usage fees, but the timing and price of the transaction remain undisclosed.
REcolorado's rocky road to new ownership continued on Monday with the confirmation of an interim CEO and an “interim board of directors.”
Larry D. McGehee, the only former board member still in a leadership role, has been named interim CEO, replacing former CEO Gene Millman. New leadership will be in place once the sale is finalized, according to a statement posted on REcolorado's website on July 1.
The interim board includes Brendan Bailey of the Denver Metro Association of Realtors (DMAR), the current CEO of the association that owns REcolorado, and Melissa Maldonado of the South Metro Denver Association of Realtors (SMDRA), as well as past DMAR president Jessica Reinhardt and past SMDRA president Janet Marlowe.
“A change in management is normal during a transition to new ownership,” new FAQs about the sale stated. The deal surprised the industry when board members confirmed it on June 24 in response to swirling rumors.
The buyer is a private company called Mazur, led by J. Burks, described as “a real estate leader for over 40 years.”
Despite the new FAQ, some questions remain unclear. The new FAQ answers some key questions, including:
Will the change in ownership affect pricing? “End user costs will remain the same or be limited to a minimal annual increase.”
When will the sale close? “The sale price and closing timeline have not been disclosed.”
When will further details about the letter of intent be released? “Due to the legal requirements and obligations of the sales process, we are unable to release further details at this time. Our commitment to you is to make these publicly available as soon as possible.”
What the associations say: DMAR and SMDRA doubled down on their earlier statement that selling now would provide greater protection from fee litigation, and reaffirmed their commitment to “ensure there will be no disruptions during or after the sale is completed,” they said in the associations' own new FAQs.
The association acknowledged that there were other potential buyers besides MAZL and MLS itself. “Both boards and management evaluated several legitimate offers for the sale of REcolorado shares,” the statement said.
“After a lengthy and comprehensive evaluation, including evaluations with association advisors and mergers and acquisition advisors, we have determined that this proposal best serves the long-term needs and services of our members.”