Form 10-D CITIGROUP COMMERCIAL For: Nov 18
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-D
ASSET-BACKED ISSUER
DISTRIBUTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the monthly distribution period from:
October 18, 2022 to November 18, 2022
Commission File Number of issuing entity: 333-207132-13
Central Index Key Number of issuing entity: 0001713393
Citigroup Commercial Mortgage Trust 2017-B1
(Exact name of issuing entity as specified in its charter)
Commission File Number of depositor: 333-207132
Central Index Key Number of depositor: 0001258361
Citigroup Commercial Mortgage Securities Inc.
(Exact name of depositor as specified in its charter)
Citi Real Estate Funding Inc.
(Central Index Key Number: 0001701238)
Morgan Stanley Mortgage Capital Holdings LLC
(Central Index Key Number: 0001541557)
Bank of America, National Association
(Central Index Key Number: 0001102113)
Citigroup Global Markets Realty Corp.
(Central Index Key Number: 0001541001)
(Exact names of sponsors as specified in their respective charters)
Richard Simpson (212) 816-5343
(Name and telephone number, including area code, of the person to contact in connection with this filing)
New York
(State or other jurisdiction of incorporation or organization of the issuing entity)
82-2624993
82-2680021
82-6550935
(I.R.S. Employer Identification No.)
| c/o Citibank, N.A. 388 Greenwich Street, 14th Floor New York, New York |
10013 | |
| (Address of principal executive offices of the issuing entity) | (Zip Code) |
(212) 816-5693
(Telephone number, including area code)
| Title of class |
Registered/reporting pursuant to (check one) |
Name of exchange (If Section 12(b)) | ||||||
| Section 12(b) |
Section 12(g) |
Section 15(d) |
||||||
| A-1 |
☐ | ☐ | ☒ | Not Applicable | ||||
| A-2 |
☐ | ☐ | ☒ | Not Applicable | ||||
| A-3 |
☐ | ☐ | ☒ | Not Applicable | ||||
| A-4 |
☐ | ☐ | ☒ | Not Applicable | ||||
| A-AB |
☐ | ☐ | ☒ | Not Applicable | ||||
| X-A |
☐ | ☐ | ☒ | Not Applicable | ||||
| X-B |
☐ | ☐ | ☒ | Not Applicable | ||||
| A-S |
☐ | ☐ | ☒ | Not Applicable | ||||
| B |
☐ | ☐ | ☒ | Not Applicable | ||||
| C |
☐ | ☐ | ☒ | Not Applicable | ||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
PART I – DISTRIBUTION INFORMATION
Item 1. Distribution and Pool Performance Information.
On November 18, 2022, a distribution was made to holders of the certificates issued by Citigroup Commercial Mortgage Trust 2017-B1.
The distribution report is attached as Exhibit 99.1 to this Form 10-D.
No assets securitized by Citigroup Commercial Mortgage Securities Inc. (the “Depositor”) and held by Citigroup Commercial Mortgage Trust 2017-B1 were the subject of a demand to repurchase or replace for breach of the representations and warranties contained in the underlying transaction documents during the monthly distribution period covered by this distribution report on Form 10-D.
The Depositor most recently filed a Form ABS-15G under Rule 15Ga-1 under the Securities Exchange Act of 1934 (“Rule 15Ga-1”) on February 11, 2022. The CIK number of the Depositor is 0001258361.
Citi Real Estate Funding Inc. (“CREFI”), one of the sponsors, most recently filed a Form ABS-15G under Rule 15Ga-1 on February 11, 2022. The CIK number of CREFI is 0001701238.
Morgan Stanley Mortgage Capital Holdings LLC (“MSMCH”), one of the sponsors, most recently filed a Form ABS-15G under Rule 15Ga-1 on November 14, 2022. The CIK number of MSMCH is 0001541557.
Bank of America, National Association (“BANA”), one of the sponsors, most recently filed a Form ABS-15G under Rule 15Ga-1 on November 10, 2022. The CIK number of BANA is 0001102113.
Citigroup Global Markets Realty Corp. (“CGMRC”), one of the sponsors, most recently filed a Form ABS-15G under Rule 15Ga-1 on February 11, 2022. The CIK number of CGMRC is 0001541001.
Item 1A. Asset-Level Information.
See the Asset Data File and the asset related document filed as Exhibit 102 and Exhibit 103, respectively, to the registrant’s Form ABS-EE filed on December 2, 2022 under Commission File No. 333-207132-13 and incorporated by reference herein.
Item 1B. Asset Representations Reviewer and Investor Communication.
Not applicable
PART II – OTHER INFORMATION
Item 2. Legal Proceedings.Disclosure from Deutsche Bank Trust Company Americas, as trustee (the “Trustee”):
Deutsche Bank Trust Company Americas (“DBTCA”) and Deutsche Bank National Trust Company (“DBNTC”) have been sued by investors in civil litigation concerning their role as trustees of certain residential mortgage-backed securities (“RMBS”) trusts.
On June 18, 2014, a group of investors, including funds managed by Blackrock Advisors, LLC, PIMCO-Advisors, L.P., and others, filed an action against DBNTC and DBTCA in New York State Supreme Court alleging that DBNTC and DBTCA failed to perform purported duties, as trustees for 544 private-label RMBS trusts, to enforce breaches of representations and warranties as to mortgage loans held by the trusts and to enforce breaches by servicers of their mortgage loan servicing obligations for the trusts. During the course of the litigation, plaintiffs dismissed the case from New York State Supreme Court and refiled two separate cases, one in the U.S. District Court for the Southern District of New York (the “BlackRock SDNY Case”) and the other in the Superior Court of California, Orange County (the “BlackRock California Case”). Pursuant to a settlement among the parties, the BlackRock SDNY Case was dismissed on December 6, 2018, and the BlackRock California Case was dismissed on January 11, 2019.
On September 27, 2017, DBTCA was added as a defendant to a case brought by certain special purpose entities including Phoenix Light SF Limited in the U.S. District Court for the Southern District of New York, in which the plaintiffs previously alleged incorrectly that DBNTC served as trustee for all 43 of the trusts at issue. On September 27, 2017, plaintiffs filed a third amended complaint that names DBTCA as a defendant in addition to DBNTC. DBTCA serves as trustee for one of the 43 trusts at issue. DBNTC serves as trustee for the other 42 trusts at issue. Plaintiffs’ third amended complaint brings claims for violation of the U.S. Trust Indenture Act of 1939 (“TIA”); breach of contract; breach of fiduciary duty; negligence and gross negligence; violation of the New York Streit Act (“Streit Act”); and breach of the covenant of good faith. However, in the third amended complaint, plaintiffs acknowledge that, before DBTCA was added to the case, the court dismissed plaintiffs’ TIA claims, negligence and gross negligence claims, Streit Act claims, claims for breach of the covenant of good faith, and certain theories of plaintiffs’ breach of contract claims, and plaintiffs only include these claims to preserve any rights on appeal. Plaintiffs allege damages of “hundreds of millions of dollars.” On November 13, 2017, DBNTC and DBTCA filed an answer to the third amended complaint. On December 7, 2018, DBNTC and DBTCA filed a motion for summary judgment. Also on December 7, 2018, plaintiffs, jointly with Commerzbank AG (see description of Commerzbank case below), filed a motion for partial summary judgment. On October 27, 2021, DBNTC and DBTCA filed a supplemental motion for summary judgment relating to plaintiffs’ standing. On February 8, 2022, the court issued an order in which it granted DBNTC and DBTCA’s supplemental motion for summary judgment, granted in part DBNTC and DBTCA’s initial motion for summary judgment, and denied plaintiffs’ motion for partial summary judgment. As a result of that order, all of plaintiffs’ claims were dismissed with prejudice. On March 10, 2022, plaintiffs filed a notice of appeal to the United States Court of Appeals for the Second Circuit with respect to the court’s orders on the motions to dismiss and for summary judgment.
On November 30, 2017, DBTCA was added as a defendant to a case brought by Commerzbank AG (“Commerzbank”) in the U.S. District Court for the Southern District of New York, in which Commerzbank previously alleged incorrectly that DBNTC served as trustee for all 50 of the trusts at issue. On November 30, 2017, Commerzbank filed a second amended complaint that names DBTCA as a defendant in addition to DBNTC. DBTCA serves as trustee for 1 of the 50 trusts at issue. DBNTC serves as trustee for the other 49 trusts at issue. Commerzbank’s second amended complaint brings claims for violation of the TIA; breach of contract; breach of fiduciary duty; negligence; violation of the Streit Act; and breach of the covenant of good faith. However, in the second amended complaint, Commerzbank acknowledges that, before DBTCA was added to the case, the court dismissed Commerzbank’s TIA claims for the trusts governed by pooling and servicing agreements, as well as its Streit Act claims and claims for breach of the covenant of good faith, and Commerzbank only includes these claims to preserve any rights on appeal. The second amended complaint alleges that DBNTC and DBTCA caused Commerzbank to suffer “hundreds of millions of dollars in losses,” but the complaint does not include a demand for money damages in a sum certain. On January 29, 2018, DBNTC and DBTCA filed an answer to the second amended complaint. On December 7, 2018, DBNTC and DBTCA filed a motion for summary judgment. Also on December 7, 2018, Commerzbank, jointly with the Phoenix Light plaintiffs, filed a motion for partial summary judgment. On February 8, 2022, the court issued an order in which it granted in part DBNTC and DBTCA’s motion for summary judgment and denied plaintiffs’ motion for partial summary judgment. As a result of that order, many of plaintiffs’ claims and theories were dismissed with prejudice. Discovery is ongoing.
On December 30, 2015, IKB International, S.A. in Liquidation and IKB Deutsche Industriebank A.G. (collectively, “IKB”), as an investor in 37 RMBS trusts, filed a summons with notice in the Supreme Court of the State of New York, New York County, against DBNTC and DBTCA as trustees of the trusts. On May 27, 2016, IKB served its complaint asserting claims for breach of contract, breach of fiduciary duty, breach of duty to avoid conflicts of interest, violation of the Streit Act, violation of the TIA, violation of Regulation AB, and violation of Section 9 of the Uniform Commercial Code. IKB alleges that DBNTC and DBTCA are liable for over U.S. $268 million in damages. On October 5, 2016, DBNTC and DBTCA, together with several other trustees defending lawsuits by IKB, filed a joint motion to dismiss. On January 6, 2017, IKB filed a notice of discontinuance, voluntarily dismissing with prejudice all claims as to three trusts. On June 20, 2017, the parties filed a stipulation, voluntarily dismissing with prejudice all claims as to four additional trusts. On January 27, 2021, the court granted in part and denied in part DBNTC and DBTCA’s motion to dismiss. The court granted the motion to dismiss with respect to IKB’s claims for violations of the Streit Act, Regulation AB, and Section 9 of the Uniform Commercial Code, as well as certain aspects of IKB’s claims for breach of contract, breach of fiduciary duty, and violation of the TIA. The court denied the remainder of the motion to dismiss. IKB’s remaining claims for breach of contract, breach of fiduciary duty, breach of duty to avoid conflicts of interest, and violation of the TIA will proceed. On May 10, 2021, DBNTC and DBTCA filed a notice of appeal with the New York Supreme Court Appellate Division, First Department, regarding certain aspects of the court’s order on the motion to dismiss. On May 20, 2021, IKB filed a notice of cross appeal with respect to other aspects of that order. On August 30, 2022, the New York Supreme Court, Appellate Division, First Department affirmed in part and reversed in part the court’s order on the motion to dismiss. On September 30, 2022, IKB filed a motion for reargument or for leave to appeal to the Court of Appeals as to certain aspects of the First Department’s decision. On September 30, 2022, DBNTC and DBTCA filed a motion for leave to appeal to the Court of Appeals as to other aspects of that decision. On November 10, 2022, the First Department granted DBNTC and DBTCA’s motion for leave to appeal to the Court of Appeals, denied IKB’s motion for reargument, and denied as moot IKB’s motion for leave to appeal to the Court of Appeals. On June 2, 2021, IKB filed a motion for re-argument regarding certain aspects of the court’s order on the motion to dismiss, which the court denied on August 3, 2021. On May 13, 2021, DBNTC and DBTCA filed an answer to the complaint. On October 28, 2021, the parties filed a stipulation, voluntarily dismissing with prejudice all claims as to seven additional trusts. On December 29, 2021, the parties filed a stipulation, voluntarily dismissing with prejudice all claims as to one additional trust. On April 22, 2022, the parties filed a stipulation, voluntarily dismissing with prejudice all claims as to 17 certificates at issue (including all claims as to 5 trusts), leaving 17 trusts at issue. Discovery is ongoing.
It is DBTCA’s belief that it has no pending legal proceedings (including, based on DBTCA’s present evaluation, the litigation disclosed in the foregoing paragraphs) that would materially affect its ability to perform its duties as Trustee under the Pooling and Servicing Agreement for this transaction.
Item 3. Sales of Securities and Use of Proceeds.
None
Item 4. Defaults Upon Senior Securities.
None
Item 5. Submission of Matters to a Vote of Security Holders.
None
Item 6. Significant Obligors of Pool Assets.
With respect to the pool assets for Citigroup Commercial Mortgage Trust 2017-B1, there are no significant obligors within the meaning of Item 1101(k) of Regulation AB.
Item 7. Change in Sponsor Interest in Securities.
None
Item 8. Significant Enhancement Provider Information.
None
Item 9. Other Information.
Wells Fargo Bank, National Association, in its capacity as Master Servicer for Citigroup Commercial Mortgage Trust 2017-B1, affirms the following amounts in the respective accounts:
| Collection Account Balance |
||||
| Prior Distribution Date: |
10/17/2022 |
$0.00 | ||
| Current Distribution Date: |
11/18/2022 |
$0.00 | ||
| Loan Combination Custodial Account Balance |
||||
| Prior Distribution Date: |
10/17/2022 |
$0.00 | ||
| Current Distribution Date: |
11/18/2022 |
$0.00 | ||
| *REO Account Balance |
||||
| Prior Distribution Date: |
10/17/2022 |
$0.00 | ||
| Current Distribution Date: |
11/18/2022 |
$0.00 | ||
| *As provided by the Special Servicer |
||||
Citibank, N.A., in its capacity as Certificate Administrator for Citigroup Commercial Mortgage Trust 2017-B1, affirms the following amounts in the respective accounts:
| Distribution Account Balance |
||||
| Prior Distribution Date: |
10/17/2022 |
$0.01 | ||
| Current Distribution Date: |
11/18/2022 |
$0.04 | ||
| Interest Reserve Account Balance |
||||
| Prior Distribution Date: |
10/17/2022 |
$0.00 | ||
| Current Distribution Date: |
11/18/2022 |
$0.00 | ||
| Excess Liquidation Proceeds Reserve Account Balance |
||||
| Prior Distribution Date: |
10/17/2022 |
$0.00 | ||
| Current Distribution Date: |
11/18/2022 |
$0.00 | ||
Item 10. Exhibits.
(a) The following is a list of documents filed as part of this Form 10-D:
(99.1): Monthly report distributed to holders of the certificates issued by Citigroup Commercial Mortgage Trust 2017-B1, relating to the November 18, 2022 distribution.
(102): Asset Data File (filed as Exhibit 102 to the registrant’s Form ABS-EE filed on December 2, 2022 under Commission File No. 333-207132-13 and incorporated by reference herein).
(103): Asset related document (filed as Exhibit 103 to the registrant’s Form ABS-EE filed on December 2, 2022 under Commission File No. 333-207132-13 and incorporated by reference herein).
(b) The exhibits required to be filed by the Registrant pursuant to this Form 10-D are listed above and in the Exhibit Index that immediately precedes the signature page hereof.
EXHIBIT INDEX
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Citigroup Commercial Mortgage Securities Inc. |
| (Depositor) |
| /s/ Richard Simpson |
| Richard Simpson, President |
Date: December 2, 2022
ATTACHMENTS / EXHIBITS
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