UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C.  20549





FORM 10 -
Q





(Mark
One)


x           QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934


For the quarterly period endedJune 30, 2008.





OR





o           TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934


For the
transition period from _________ to __________.





Commission File
Number:  000-51940









FSP Galleria North
Corp.


(Exact name of registrant as specified
in its charter)





Delaware
            20-1641289(State or other jurisdiction
      of
            (I.R.S.Employerincorporation or
      organization)
            Identification
      No.)





401
Edgewater Place, Suite 200


Wakefield, MA
01880-6210


(Address
of principal executive offices)(Zip Code)







(781)
557-1300 (Registrant’s
telephone number, including area code)




N/A (Former
name, former address and former fiscal year, if changed since last
report)





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  x
            NO  o





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.  See the definitions of “large accelerated filer,”
“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.





Large accelerated filero
            Accelerated fileroNon-accelerated
      filero(Do not check if a smaller
      reporting company)
            Smaller reporting
      companyx





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).





YES  o
            NO  x





The
number of shares of common stock outstanding was 1 and the number of shares of
preferred stock outstanding was 860 each as of August 7, 2008.








FSP
Galleria North Corp.





Form
10-Q





Quarterly
Report


June 30,
2008





Table of
Contents


PagePart
      I.
            Financial
      InformationItem
      1.
            Financial
      StatementsConsolidated
      Balance Sheets as of June 30, 2008 and December 31, 2007
            2Consolidated
      Statements of Operations for the three and six months ended June 30, 2008
      and 2007
            3Consolidated
      Statements of Cash Flows for the six months ended June 30, 2008 and
      2007
            4Notes
      to Consolidated Financial Statements
            5-6Item
      2.
            Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
            7-10Item
      3.
            Quantitative
      and Qualitative Disclosures About Market Risk
            11Item
      4.
            Controls
      and Procedures
            11Item
      4T.
            Controls
      and Procedures
            11Part
      II.
            Other
      InformationItem
      1.
            Legal
      Proceedings
            12Item
      1A.
            Risk
      Factors
            12Item
      2.
            Unregistered
      Sales of Equity Securities and Use of Proceeds
            12Item
      3.
            Defaults
      Upon Senior Securities
            12Item
      4.
            Submission
      of Matters to a Vote of Security Holders
            12Item
      5.
            Other
      Information
            12Item
      6.
            Exhibits
            12Signatures
            13





1
   PART
I – FINANCIAL INFORMATION
  Item
1.    Financial Statements
 
 FSP
Galleria North Corp.
 Consolidated
Balance Sheets
 (Unaudited)
 
 (in
      thousands, except share and par value amounts)
              
              June
      30,
                2008
              
              
              December 31,
                2007Assets:Real
      estate investments, at cost:Land
              
              $
              5,535
              
              
              $
              5,535Buildings
      and improvements
              
              
              58,461
              
              
              
              58,461Fixtures
      and equipment
              
              
              27
              
              
              
              -64,023
              
              
              
              63,996Less
      accumulated depreciation
              
              
              5,559
              
              
              
              4,809Real
      estate investments, net
              
              
              58,464
              
              
              
              59,187Acquired
      real estate leases, net of accumulated amortization
                of
      $2,554 and $2,210, respectively
              
              
              1,060
              
              
              
              1,404Acquired
      favorable real estate leases, net of accumulated
                amortization
      of $1,100 and $952, respectively
              
              
              457
              
              
              
              605Cash
      and cash equivalents
              
              
              8,293
              
              
              
              8,908Tenant
      rent receivable
              
              
              64
              
              
              
              324Step
      rent receivable
              
              
              47
              
              
              
              63Prepaid
      expenses and other assets
              
              
              44
              
              
              
              50Total
      assets
              
              $
              68,429
              
              
              $
              70,541Liabilities
      and Stockholders’ Equity:Liabilities:Accounts
      payable and accrued expenses
              
              $
              1,939
              
              
              $
              2,743Total
      liabilities
              
              
              1,939
              
              
              
              2,743Commitments
      and Contingencies:
              
              
              -
              
              
              
              -Stockholders’
      Equity:Preferred
      Stock, $.01 par value, 860 sharesauthorized,
      issued and outstanding,aggregate
      liquidation preference $86,000at
      June 30, 2008 and December 31, 2007
              
              
              -
              
              
              
              -Common
      Stock, $.01 par value, 1 shareauthorized,
      issued and outstanding
              
              
              -
              
              
              
              -Additional
      paid-in capital
              
              
              78,956
              
              
              
              78,956Distributions
      in excess of retained earnings
              
              
              (12,466
              )
              
              
              (11,158
              )Total
      Stockholders’ Equity
              
              
              66,490
              
              
              
              67,798Total
      Liabilities and Stockholders’ Equity
              
              $
              68,429
              
              
              $
              70,541See
      accompanying notes to consolidated financial statements.
 
 
  2
 
 FSP
Galleria North Corp.
 Consolidated
Statements of Operations
 (Unaudited)
 
 For
      the
              
              
              For
      theThree
      Months Ended
              
              
              Six
      Months EndedJune
      30,
              
              
              June
      30,(in
      thousands, except share and per share amounts)
              
              2008
              
              
              2007
              
              
              2008
              
              
              2007Revenues:Rental
              
              $
              2,538
              
              
              $
              2,638
              
              
              $
              5,191
              
              
              $
              5,057Total
      revenue
              
              
              2,538
              
              
              
              2,638
              
              
              
              5,191
              
              
              
              5,057Expenses:Rental
      operating expenses
              
              
              683
              
              
              
              695
              
              
              
              1,430
              
              
              
              1,491Real
      estate taxes and insurance
              
              
              344
              
              
              
              372
              
              
              
              687
              
              
              
              482Depreciation
      and amortization
              
              
              547
              
              
              
              547
              
              
              
              1,094
              
              
              
              1,094Total
      expenses
              
              
              1,574
              
              
              
              1,614
              
              
              
              3,211
              
              
              
              3,067Income
      before interest income
              
              
              964
              
              
              
              1,024
              
              
              
              1,980
              
              
              
              1,990Interest
      income
              
              
              43
              
              
              
              84
              
              
              
              102
              
              
              
              163Net
      income attributable to preferred stockholders
              
              $
              1,007
              
              
              $
              1,108
              
              
              $
              2,082
              
              
              $
              2,153Weighted
      average number of preferred shares outstanding,basic
      and diluted
              
              
              860
              
              
              
              860
              
              
              
              860
              
              
              
              860Net
      income per preferred share, basic and diluted
              
              $
              1,171
              
              
              $
              1,288
              
              
              $
              2,421
              
              
              $
              2,503See
      accompanying notes to consolidated financial statements.
 
  3
  FSP
Galleria North Corp.
 Consolidated
Statements of Cash Flows
 (Unaudited)
 
 For
      the
                Six
      Months Ended
                June
      30,(in
      thousands)
              
              2008
              
              
              2007Cash
      flows from operating activities:Net
      income
              
              $
              2,082
              
              
              $
              2,153Adjustments
      to reconcile net income to net cashprovided
      by operating activities:Depreciation
      and amortization
              
              
              1,094
              
              
              
              1,094Amortization
      of favorable real estate leases
              
              
              148
              
              
              
              148Changes
      in operating assets and liabilities:Tenant
      rent receivable
              
              
              260
              
              
              
              191Step
      rent receivable
              
              
              16
              
              
              
              16Prepaid
      expenses and other assets
              
              
              6
              
              
              
              (23
              )Accounts
      payable and accrued expenses
              
              
              (804
              )
              
              
              (1,851
              )Net
      cash provided by operating activities
              
              
              2,802
              
              
              
              1,728Cash
      flows from investing activities:Purchase
      of real estate assets
              
              
              (27
              )
              
              
              -Net
      cash used for investing activities
              
              
              (27
              )
              
              
              -Cash
      flows from financing activities:Distributions
      to stockholders
              
              
              (3,390
              )
              
              
              (3,371
              )Net
      cash used for financing activities
              
              
              (3,390
              )
              
              
              (3,371
              )Net
      decrease in cash and cash equivalents
              
              
              (615
              )
              
              
              (1,643
              )Cash
      and cash equivalents, beginning of period
              
              
              8,908
              
              
              
              8,770Cash
      and cash equivalents, end of period
              
              $
              8,293
              
              
              $
              7,127See
      accompanying notes to consolidated financial statements.
 
  4




FSP
Galleria North Corp.


Notes
to Consolidated Financial Statements


(Unaudited)





1.
            Organization, Properties, Basis of
      Presentation and Recent Accounting
  Pronouncements





Organization





FSP Galleria North Corp. (the “Company”)
was organized on September 21, 2004 as a corporation under the laws of the State
of Delaware to purchase, own and operate a sixteen-story Class “A” office tower
containing approximately 379,518 rentable square feet of space located on
approximately 4.8 acres of land in Dallas, Texas (the
“Property”).  The Company acquired the Property onOctober 14, 2004.





Basis
of Presentation





The unaudited consolidated financial
statements of the Company include all the accounts of the Company and its wholly
owned subsidiaries.  These financial statements should be read in
conjunction with the Company's financial statements and notes thereto contained
in the Company's Annual Report on Form 10-K for the year endedDecember 31, 2007, as filed with the Securities and
Exchange Commission (the “SEC”).





The accompanying interim financial
statements are unaudited; however, the financial statements have been prepared
in accordance with accounting principles generally accepted in theUnited States of Americafor interim financial information and
in conjunction with the rules and regulations of the
SEC.  Accordingly, they do not include all of the disclosures required
by accounting principles generally accepted in theUnited States of Americafor complete financial statements. In
the opinion of management, all adjustments (consisting solely of normal
recurring matters) necessary for a fair presentation of the financial statements
for these interim periods have been included.  Operating results for
the three and six months ended June 30, 2008 are not necessarily indicative of
the results that may be expected for the year ending December 31, 2008 or for
any other period.





Recent AccountingPronouncements





In September 2006, the Financial
Accounting Standards Board (“FASB”) issued Statement of Financial Accounting
Standards (“SFAS”) No. 157, which defines fair value, establishes a framework
for measuring fair value inaccordance withgenerally accepted accounting principles
(“GAAP”), and expands disclosures about fair
value measurements.  SFAS No. 157 applies under other accounting
pronouncements that require or permit fair value measurements, the FASB having
previously concluded in those accounting pronouncements that fair value is the
relevant measurement attribute.  SFAS No. 157 is effective for
financial statements issued for fiscal years beginning afterNovember 15, 2007, and interim periods within those
fiscal years.  The adoption of this standarddid not have animpact on the Company’s financial
position,results ofoperations or cash
flows.





In February 2007, the FASB issued SFAS
No. 159, The Fair Value Option for Financial Assets and Financial Liabilities —
Including an amendment of FASB Statement No. 115, which permits entities to
choose to measure many financial instruments and certain other items at fair
value that are not currently required to be measured at fair value and
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. This Statement is effective for
financial statements issued for fiscal years beginning afterNovember 15, 2007.  The adoption of this
standard did not have an impact on the Company’s financial position, results of
operations or cash flows.




2.
            Income
  Taxes





The Company has elected to be taxed as a
real estate investment trust (“REIT”) under the Internal Revenue Code of 1986,
as amended (the “Code”).  As a REIT, the Company generally is entitled
to a tax deduction for dividends paid to its stockholders, thereby effectively
subjecting the distributed net income of the Company to taxation at the
shareholder level only.  The Company must comply with a variety of
restrictions to maintain its status as a REIT.  These restrictions
include the type of income it can earn, the type of assets it can hold, the
number of stockholders it can have and the concentration of their ownership, and
the amount of the Company’s income that must be distributed
annually.


5


FSP
Galleria North Corp.


Notes
to Consolidated Financial Statements


(Unaudited)





2.
            Income Taxes
      (continued)





The Company’s adoption of the provisions
of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, (“FIN
48”) effective January 1, 2007 did not result in recording a liability, nor was
any accrued interest and penalties recognized with the adoption of FIN
48.  Accrued interest and penalties will be recorded as income tax
expense, if the Company records a liability in the future.  The
Company’s effective tax rate was not affected by the adoption of FIN
48.  The Company files income tax returns in the U.S. federal
jurisdiction and State of Texas jurisdiction.  The statute of
limitations for the Company’s income tax returns is generally three years and as
such, the Company’s returns that remain subject to examination would be
primarily from 2004 and thereafter.





3.
            Related Party
      Transactions





The Company has in the past engaged in
and currently engages in transactions with a related party, Franklin Street
Properties Corp. (“Franklin Street”) and its subsidiaries FSP Investments LLC
and FSP PropertyManagementLLC (collectively
“FSP”).  The Company expects to continue to have related party
transactions with FSP in the form of management fees paid to FSP to manage the
Company on behalf of its stockholders.  FSP Property Management LLC
currently provides the Company with asset management and financial reporting
services.  The asset management agreement between the Company and FSP
Property Management LLC requires the Company to pay FSP Property Management LLC
a monthly fee equal to one percent (1%) of the gross revenues of the
Property.  The asset management agreement between the Company and FSP
Property Management LLC may be terminated by either party without cause at any
time, upon at least thirty (30) days’ written notice, effective at the end of
the notice period.  For the six months ended June 30, 2008 and 2007,
management fees paid were$56,000and $50,000,
respectively.





4.
            NetIncome Per
      Share





Basic net
income per share is computed by dividing net income by the weighted average
number of shares of Preferred Stock outstanding during the
period.  Diluted net income per share reflects the potential dilution
that could occur if securities or other contracts to issue shares were exercised
or converted into shares.  There were no potential dilutive shares
outstanding at June 30, 2008 and 2007.





5.
            Segment
      Reporting





The
Company operates in one industry segment, which is real estate ownership of
commercial property.  The Company owned and operated the Property for
all periods presented.





6.
            CashDistributions





The
Company’s declared and paid cash distributions were as follows:





Quarter
Paid
            
            Distributions
              Per Share
            
            
            Total
              DistributionsFirst quarter of
      2008
            
            $
            1,995
            
            
            $
            1,716,000Second quarter of
      2008
            
            $
            1,947
            
            
            $
            1,674,000First quarter of
      2007
            
            $
            1,954
            
            
            $
            1,680,000Second quarter of
      2007
            
            $
            1,965
            
            
            $
            1,691,000





7.
            SubsequentEvent





The
Company declared a cash distribution of $1,919 per preferred share on July 18,
2008 to the holders of record of the Company’s Preferred Stock on July 31, 2008,
payable on August 20, 2008.


6


Item 2. Management’s Discussion and
Analysis of Financial Condition and Results of Operations.





The
following discussion should be read in conjunction with the financial statements
and notes thereto appearing elsewhere in this report and in our Annual Report on
Form 10-K for the year ended December 31, 2007.  Historical results
and percentage relationships set forth in the consolidated financial statements,
including trends which might appear, should not be taken as necessarily
indicative of future operations.  The following discussion and other
parts of this Quarterly Report on Form 10-Q may also contain forward-looking
statements based on current judgments and current knowledge of management, which
are subject to certain risks, trends and uncertainties that could cause actual
results to differ materially from those indicated in such forward-looking
statements.  Accordingly, readers are cautioned not to place undue
reliance on forward-looking statements.  Investors are cautioned that
our forward-looking statements involve risks and uncertainty, including without
limitation current disruptions in the credit markets, changes in economic
conditions in the market where we own the Property and in the global markets,
risks of a lessening of demand for the type of real estate owned by us, changes
in the economic conditions of our sole tenant or its parent, the pending
expiration of our sole tenant’s lease on December 31, 2009, changes in
government regulations, and expenditures that cannot be anticipated such as
utility rate and usage increases, unanticipated repairs, additional staffing,
insurance increases and real estate tax valuation
reassessments.  Although we believe the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements.  We may not update
any of the forward-looking statements after the date this Quarterly Report on
Form 10-Q is filed to conform them to actual results or to changes in our
expectations that occur after such date, other than as required by
law.





Overview





We own and operate a sixteen-story Class
Asuburbanoffice tower located inDallas,Texascontaining approximately 379,518 square
feet of rentable space located on approximately 4.8 acres of land, which we
refer to as the Property.  TheProperty is 100% leased to a single
tenant, Tenet Hospitals Limited, which we refer to as Tenet Hospitals, whose
lease expires onDecember
31, 2009.




We operate in one business segment,
which is real estate operations, and own a single property.  Our real
estate operations involve real estate rental operations, leasing services and
property management services.  The main factor that affects our real
estate operations is the broad economic market conditions in theUnited Statesand, more specifically, the economic
conditions inDallas,Texas, the relevant
submarket.  These market conditions affect the occupancy levels and
the rent levels on both a national and local level.  We have no
influence on national or local market conditions.




It is difficult for management to predict what will happen to
occupancy or rents after the expiration of the lease with Tenet Hospitals onDecember 31,
2009because the need for
space and the pricetenantsare willing to pay are tied to both the
local economy and to the larger trends in the economy, such as job growth,
interest rates, and corporate earnings, which in turn are tied to even larger
macroeconomic and political factors, such as volatility in energy pricing and
the risk of terrorism.  In addition to the difficulty of predicting macroeconomic factors, it is
difficult to predict how our local market or tenants will suffer or benefit from
changes in the larger economy.  In addition, because the Property is
in a single geographical market and leased to one tenant in the healthcare industry, these macroeconomic
trends may have a different effect on the Property and on its
tenant.




Trends and
Uncertainties





Debt Market
Conditions





Because
interest rate levels and the availability of financing may affect real estate
values, occupancy levels and property income, debt market conditions could
affect our business.  The debt market is currently experiencing
unprecedented disruptions, including reduced liquidity and increased credit risk
premiums for certain market participants.  These conditions, which
increase the cost and reduce the availability of debt, may continue or worsen in
the future.  At this time we cannot predict the extent or duration of
any negative impact that the current debt market conditions will have on our
business and, more specifically, on our efforts to find a replacement tenant (or
tenants) following the expiration of Tenet Hospitals’ lease on December 31,
2009.





7


Real Estate
Operations





On August
7, 2008, Tenet Hospitals announced that it will be relocating to a different
property location following the expiration of its lease on December 31,
2009.  Prior to Tenet Hospitals’ August 7, 2008 announcement,
management had assumed that a full re-tenanting of the Property would likely be
required.  As a result, management previously initiated a marketing
strategy to find, and is aggressively searching for, a replacement tenant (or
tenants).
  Given the
amount of space that will need to be re-leased upon the expiration of Tenet
Hospitals’ lease on December 31, 2009 and the potential for significant tenant
improvement allowances and leasing commissions, it is possible that we may need
to borrow funds in the future.  We may, without the consent of any
holder of shares of our preferred stock, obtain a revolving line of credit of up
to $27,400,000 on commercially reasonable terms to be used for capital
improvements or to pay operating expenses of the Property, if
needed.  As of August 7, 2008, we have neither sought nor obtained a
line of credit.
  For the
six months ended June 30, 2008, we believe that vacancy rates for Class A
buildings in the Lower Tollway portion of the Far North Dallas submarket
remained stable and that rental rates also remained
stable.  Management does not know how long this trend will
continue.  Following the expiration of the existing lease with Tenet
Hospitals on December 31, 2009, we may not be able to re-lease all of the space
and any space that is re-leased may be at a rate that is significantly lower
than the expiring rate, possibly resulting in decreased cash
flows.  Bankruptcy or a material adverse change in the financial
condition of any significant tenant at the Property would likely cause a
material adverse effect.


Critical
Accounting Policies





We have
certain critical accounting policies that are subject to judgments and estimates
by our management and uncertainties of outcome that affect the application of
these policies.  We base our estimates on historical experience and on
various other assumptions we believe to be reasonable under the
circumstances.  On an on-going basis, we evaluate our
estimates.  In the event estimates or assumptions prove to be
different from actual results, adjustments are made in subsequent periods to
reflect more current information.  The accounting policies that we
believe are most critical to the understanding of our financial position and
results of operations, and that require significant management estimates and
judgments, are discussed in Item 7, Management’s Discussion and Analysis of
Financial Condition and Results of Operations in our Annual Report on Form 10-K
for the year ended December 31, 2007.





Critical
accounting policies are those that have the most impact on the reporting of our
financial condition and results of operations and those requiring significant
judgments and estimates.  We believe that our judgments and
assessments are consistently applied and produce financial information that
fairly presents our results of operations.





No
changes to our critical accounting policies have occurred since the filing of
our Annual Report on Form 10-K for the year ended December 31,
2007.





Results of
Operations




The
Property is currently 100% leased to one tenant pursuant to a lease that was in
place prior to the acquisition of the Property and that expires on December 31,
2009.





Comparison
of the three months ended June 30, 2008 to the three months ended June 30,
2007.





Revenue





Total
revenue decreased by $0.1 million to $2.5 million for the three months ended
June 30, 2008 as compared to $2.6 million for the same period in 2007. The
decrease was primarily due to a decrease in recovery of expenses. The majority
of the operating expenses, real estate taxes and insurance expenses represent
amounts recoverable by the Company.





8


Expenses





Total expenseswere$1.6millionfor the threemonths endedJune30, 2008and 2007.





Comparison
of the six months ended June 30, 2008 to the six months ended June 30,
2007.





Revenue





Total revenue increased by$0.1 million to $5.2 millionfor the six months endedJune 30, 2008, as compared to $5.1 million for the
same period in 2007.The increasewas primarily due to an increasein recovery of expenses.The majority of theoperating expenses, real estate taxes
and insurance expenses represent amounts recoverable by the
Company.





Expenses





Total expenses increased
approximatelyby$0.1 millionto $3.2 millionfor the six months endedJune 30, 2008as compared to $3.1 millionfor the same period in
2007.This increase was primarily
attributable to an increase in real estate taxesbetween the
periods.





Liquidity and Capital
Resources





Cash and cash equivalents were
$8.3million atJune30, 2008and $8.9million atDecember 31,2007. The $0.6million decrease for thesixmonths endedJune30, 2008is attributable to approximately
$2.8million provided by operating
activities, which was offset by $3.4million used for financing
activities.




Management believes that existing
cashand cash equivalents
as ofJune30, 2008 of $8.3million and cash anticipated to be
generated internally by operations will be sufficient to meet working capital
requirements, distributions and anticipated capital expenditures for at least
the next 12 months.





Operating Activities





The cashprovided byoperating activities of $2.8million is primarily attributable to
netincomeof approximately $2.1million plus the add-back of
$1.2million of depreciation and
amortizationand a
$0.3milliondecrease inoperating assets,whichwas partially offset bya $0.8milliondecrease inaccounts payable and accrued
expenses.  The
decrease in accounts payable and accrued expenses was primarily a resultthe timing ofreal estate tax paymentscompared to the accrual of the related
expenses.





Investing Activities





Cash used for investing activities of
$27,000 was primarily for capital expenditures.





Financing Activities





Cashused forfinancing activities of $3.4million was attributable to
distributions to stockholders.





Sources
and Uses of Funds





Ourprincipal demands on liquidity are cash
foroperations and dividendspaidto equity holders.  As ofJune30,2008, we had approximately $1.9million in accrued liabilities and no
long-term debt.  In the near term, liquidity is generated by cash from
operations.





Contingencies





We may be
subject to various legal proceedings and claims that arise in the ordinary
course of our business.  Although occasional adverse decisions (or
settlements) may occur, we believe that the final disposition of such matters
will not have a material adverse effect on our financial position or results of
operations.





9


Related
Party Transactions




We have in the past engaged in and
currently engage in transactions witha related party, Franklin Street
Properties Corp., which we refer to asFranklin Street, and its subsidiaries FSP Investments
LLC and FSP Property Management LLC, which we collectively refer to as
FSP.We expect
to continue to have related party transactions with FSP in the form of
management fees paid to FSP to manage us on behalf of our
stockholders.  FSP Property Management LLC currently provides us with
asset management and financial reporting services.Theasset management agreementbetween the Company andFSP Property Management LLC requires us
to pay FSP Property Management LLC a monthly fee equal to one percent (1%) of
the gross revenues of the Property.  The asset management agreement
may be terminated by either party without cause at any time, upon at least
thirty (30) days written notice, effective at the end of the notice
period.  For thesixmonths endedJune30, 2008and 2007, management fees paid were$56,000and $50,000, respectively.




Franklin Streetis the sole holder of our one share
ofcommonstockthat is issued and
outstanding.Subsequent to the completion of the
placement ofourpreferredstock in August 2005,Franklin Streethas not beenentitled to share in our earnings or
any related dividend.




Concentration
of Credit Risks




For the
six months ended June 30, 2008 and 2007, 100% of the Property’s rental income
was derived from our lease with Tenet Hospitals, with the lease being fully
guaranteed by Tenet Healthcare Corporation (NYSE: THC).  We refer to
Tenet Hospitals and Tenet Healthcare Corporation collectively as Tenet. Our
lease with Tenet Hospitals expires on December 31, 2009 and, on August 7, 2008,
Tenet Hospitals announced that it will be relocating to a different property
location following the expiration of its lease. Because the
Property currently serves as the worldwide headquarters for
Tenet, future receipts are dependent upon the financial strength of the
lessee and its ability to perform under the lease agreement.  Tenet’s
filings with the Securities and Exchange Commission are publicly
available.





Tenet had
total current assets of $2.8 billion and $2.6 billion, total assets of $8.2
billion and $8.4 billion, total current liabilities of $2.0 billion and $2.0
billion, total liabilities of $8.2 billion and $8.3 billion and total
shareholder’s equity of $29 million and $54 million at June 30, 2008 and
December 31, 2007, respectively.  Tenet had net income (losses) from
continuing operations before income taxes of ($35) million and ($27) million for
the three months ended June 30, 2008 and 2007, respectively.  Tenet
had net income (losses) of ($15) million and ($30) million for the three months
ended June 30, 2008 and 2007, respectively.  Tenet had net income
(losses) from continuing operations before income taxes of ($53) million and
($25) million for the six months ended June 30, 2008 and 2007,
respectively.  Tenet had net income (losses) of ($46) million and $45
million for the six months ended June 30, 2008 and 2007,
respectively.





All of
the information set forth above regarding Tenet comes from Tenet's filings with
the Securities and Exchange Commission and we have not independently verified
its accuracy.


10


Item
3.    Quantitative and Qualitative Disclosures About Market
Risk.





Not
applicable.





Item
4.    Controls and Procedures.





Not
applicable.





Item
4T.  Controls and Procedures.







Disclosure
Controls and Procedures




Our management, with the participation
of our principal executive officer and principal financial officer, evaluated
the effectiveness of our disclosure controls and procedures as of June 30, 2008.
The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934 or the Exchange Act, means
controls and other procedures of a company that are designed to ensure that
information required to be disclosed by a company in the reports that it files
or submits under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the SEC's rules and
forms.  Disclosure controls and procedures include, without
limitation, controls and procedures designed to ensure that information required
to be disclosed by a company in the reports that it files or submits under the
Exchange Act is accumulated and communicated to the company’s management,
including its principal executive and principal financial officers, as
appropriate to allow timely decisions regarding required
disclosure.  Management recognizes that any controls and procedures,
no matter how well designed and operated, can provide only reasonable assurance
of achieving their objectives and management necessarily applies its judgment in
evaluating the cost-benefit relationship of possible controls and
procedures.  Based on the evaluation of our disclosure controls and
procedures as of June 30, 2008, our principal executive officer and principal
financial officer concluded that, as of such date, our disclosure controls and
procedures were effective at the reasonable assurance level.





Changes
in Internal Control Over Financial Reporting





No change
in our internal control over financial reporting occurred during the quarter
ended June 30, 2008 that has materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting.










11


PART
II – OTHER INFORMATION





Item
1.    Legal Proceedings.





From time
to time, we may be subject to legal proceedings and claims that arise in the
ordinary course of our business.  Although occasional adverse
decisions (or settlements) may occur, we believe that the final disposition of
such matters will not have a material adverse effect on our financial position,
cash flows or results of operations.





Item
1A.    Risk Factors.





Not
applicable.







Item
2.    Unregistered Sales of Equity Securities and Use of
Proceeds.





None.





Item
3.    Defaults Upon Senior Securities.





None.





Item
4.    Submission of Matters to a Vote of Security
Holders.





None.





Item
5.    Other Information.





None.





Item
6.Exhibits.





See Exhibit Index attached hereto,
which is incorporated herein by reference.





12


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.





FSP
GALLERIA NORTH CORP.







Date
            Signature
            TitleDate:  August
      8, 2008
            /s/ George J.
      Carter
              George
      J. Carter
            President
              (Principal
      Executive Officer)Date:
      August 8, 2008
            /s/ Barbara J.
      Fournier
              Barbara
      J. Fournier
            Chief
      Operating Officer
              (Principal
      Financial Officer)








13


EXHIBIT
INDEX





Exhibit
      No.
            Description31.1
            Certification
      of FSP Galleria North Corp.'s principal executive officer pursuant to
      Section 302 of the Sarbanes-Oxley Act of 2002.31.2
            Certification
      of FSP Galleria North Corp.'s principal financial officer pursuant to
      Section 302 of the Sarbanes-Oxley Act of 2002.32.1
            Certification
      of FSP Galleria North Corp.'s principal executive officer pursuant to 18
      U.S.C. Section 1350, as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002.32.2
            Certification
      of FSP Galleria North Corp.'s principal financial officer pursuant to 18
      U.S.C. Section 1350, as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002.











14