It appears the sun may not have completely set on the proposed sale of the shares of REcolorado owned by the Denver Metro Association of Realtors (DMAR) and the South Metro Denver Realtor Association (SMDRA) to MAZL LLC.
On Wednesday, MRI Software — the parent company of CTM eContracts, which serves nearly 40,000 Colorado real estate professionals — sent a letter to subscribers informing them of the firm’s Indication of Interest (IOI) in the purchase of REcolorado, a multiple listing service (MLS) with 26,000 members.
“Having integrated and worked with REColorado for many years, we know that REColorado is a valuable asset to the real estate industry in Colorado. The goal of the proposed acquisition is to secure REColorado’s future while supporting and improving its MLS and contract platforms,” wrote John Ensign, the president of MRI Software, in a letter obtained and reviewed by HousingWire.
”Although the contents of the IOI are confidential, we feel that it will be very competitive. Our intention is to keep existing integrations, help users maximize their profits and efficiencies, and continue to collaborate with industry leaders in the real estate community so that we develop and upgrade products to meet evolving needs. This kind of collaboration inspired the recent acquisition of eGent and the rollout of our next-generation platform.”
An MRI Software spokesperson added in an email: “MRI’s CTM eContracts has worked with REColorado for more than 20 years and knows how important REColorado is to the local real estate community. We do not know the details of the offer that REColorado is voting on so it’s impossible to predict the odds, but we believe that our offer is competitive.”
In late June, the board of REcolorado was surprised to learn that SMDRA and DMAR, the primary shareholders of the MLS, had agreed to sell the company to a private individual outside of the real estate industry. This private individual was later revealed to be MAZL LLC, led by J. Burks.
According to members of the REcolorado board, who have since been dismissed or resigned, the news of the sale came despite ongoing negotiations with REcolorado’s management and board members to buy back their shares.
Last month, SMDRA and DMAR told their members that it felt “confident in the letter of intent [from MAZL LLC] and that the proposed buyer has committed to the long-term operation of the MLS service for our professional brokerage community and that the resources of the MLS will be used to enhance the service offerings to all subscribers and that the company will not be resold.”
SMDRA and DMAR are holding a membership meeting on Monday to discuss MAZL LLC’s letter of intent.
“It is nice to actually see an indication of intent that is more transparent and from an actual tech platform who we already have a client-vendor relationship with and who is already integrated with REcolorado,” said Karen Frisone, the broker-owner of Denver-area brokerage K.O. Real Estate. “The MAZL offer might be a great opportunity, but it is so clouded in secrecy and the only thing we know is that MAZL is a shell company created for the sole purpose of this purchase, which they have admitted.”
Frisone hopes that SMDRA and DMAR take the time on Monday to answer members’ questions about the proposed sale, but she noted that many other area real estate professionals have expressed feeling more positive about the MRI Software offer due to the company’s transparency with members and subscribers.
SMDRA and DMAR did not return HousingWire’s requests for comment.
