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

|   | For      the quarterly period ended September 30,2008. |
|--------|--------------------------------------------------------|

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

|   | For      the transition period from _________ to  __________. |
|--------|---------------------------------------------------------------|

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

|   | YES     x | NO    o |
|--------|------------------------------------|-----------------------------|

|   | Large accelerated filer      o                                                                               | Accelerated filer o               |
|--------|-------------------------------------------------------------------------------------------------------------------|----------------------------------------|
|   |                                                                                                              |                                   |
|   | Non-accelerated      filer   o  (Do not check if a      smaller reporting company)  | Smaller reporting company      x  |

|   | YES     o | NO     x |
|--------|------------------------------------|-----------------------------------|

----

|          |                       |                                                                                                            |   | Page   |
|---------------|----------------------------|-----------------------------------------------------------------------------------------------------------------|--------|--------|
| Part      I.  | Financial      Information |                                                                                                            |   |
|          |                       |                                                                                                            |   |   |
|          | Item      1.               | Financial      Statements                                                                                       |   |   |
|          |                       |                                                                                                            |   |   |
|          |                       | Consolidated      Balance Sheets as of September 30, 2008 and December 31,    2007                              |   | 2      |
|          |                       |                                                                                                            |   |   |
|          |                       | Consolidated      Statements of Operations for the three and nine months ended September 30,      2008 and 2007 |   | 3      |
|          |                       |                                                                                                            |   |   |
|          |                       | Consolidated      Statements of Cash Flows for the nine months ended September 30, 2008 and      2007           |   | 4      |
|          |                       |                                                                                                            |   |   |
|          |                       | Notes      to Consolidated Financial Statements                                                                 |   | 5-7    |
|          |                       |                                                                                                            |   |   |
|          | Item      2.               | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations           |   | 8-11   |
|          |                       |                                                                                                            |   |   |
|          | Item      3.               | Quantitative      and Qualitative Disclosures About Market Risk                                                 |   | 12     |
|          |                       |                                                                                                            |   |   |
|          | Item      4.               | Controls      and Procedures                                                                                    |   | 12     |
|          |                       |                                                                                                            |   |   |
|          | Item      4T.              | Controls      and Procedures                                                                                    |   | 12     |
|          |                       |                                                                                                            |   |   |
| Part      II. | Other      Information     |                                                                                                            |   |
|          |                       |                                                                                                            |   |   |
|          | Item      1.               | Legal      Proceedings                                                                                          |   | 13     |
|          |                       |                                                                                                            |   |   |
|          | Item      1A.              | Risk      Factors                                                                                               |   | 13     |
|          |                       |                                                                                                            |   |   |
|          | Item      2.               | Unregistered      Sales of Equity Securities and Use of Proceeds                                                |   | 13     |
|          |                       |                                                                                                            |   |   |
|          | Item      3.               | Defaults      Upon Senior Securities                                                                            |   | 13     |
|          |                       |                                                                                                            |   |   |
|          | Item      4.               | Submission      of Matters to a Vote of Security Holders                                                        |   | 13     |
|          |                       |                                                                                                            |   |   |
|          | Item      5.               | Other      Information                                                                                          |   | 13     |
|          |                       |                                                                                                            |   |   |
|          | Item      6.               | Exhibits                                                                                                        |   | 13     |
|          |                       |                                                                                                            |   |   |
| Signatures    |                       | 14                                                                                                              |

----

| Item      1. | Financial      Statements |
|--------------|---------------------------|

(Unaudited) 

| (in      thousands, except share and par value amounts)                                                                                              |   | September      30,2008 |    |   | December      31,2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                 |   |                   |    |   |                  |   |
| Assets:                                                                                                                                              |   |                   |    |   |                  |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |
| Real      estate investments, at cost:                                                                                                               |   |                   |    |   |                  |   |
|      Land                                                                                                                   |   | $                      | 5,535   |   |                  | $      | 5,535 |   |
|      Buildings      and improvements                                                                                        |   |                   | 58,505  |   |                  |   | 58,461 |   |
|      Fixtures      and equipment                                                                                            |   |                   | 27      |   |                  |   | - |   |
|                                                                                                                                                 |   |                   | 64,067  |   |                  |   | 63,996 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Less      accumulated depreciation                                                                                     |   |                   | 5,935   |   |                  |   | 4,809 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Real      estate investments, net                                                                                                                    |   |                   | 58,132  |   |                  |   | 59,187 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Acquired      real estate leases, net of accumulated amortization      of      $2,726 and $2,210, respectively         |   |                   | 888     |   |                  |   | 1,404 |   |
| Acquired      favorable real estate leases, net of accumulated      amortization      of $1,174 and $952, respectively |   |                   | 383     |   |                  |   | 605 |   |
| Cash      and cash equivalents                                                                                                                       |   |                   | 7,873   |   |                  |   | 8,908 |   |
| Tenant      rent receivable                                                                                                                          |   |                   | 174     |   |                  |   | 324 |   |
| Step      rent receivable                                                                                                                            |   |                   | 39      |   |                  |   | 63 |   |
| Prepaid      expenses and other assets                                                                                                               |   |                   | 48      |   |                  |   | 50 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|       Total      assets                                                                                                |   | $                      | 67,537  |   |                  | $      | 70,541 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Liabilities      and Stockholders’ Equity:                                                                                                     |   |                   |    |   |                  |   |   |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Liabilities:                                                                                                                                         |   |                   |    |   |                  |   |   |   |
| Accounts      payable and accrued expenses                                                                                                           |   | $                      | 1,705   |   |                  | $      | 2,743 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Total      liabilities                                                                                                 |   |                   | 1,705   |   |                  |   | 2,743 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Commitments      and Contingencies:                                                                                                                  |   |                   | -       |   |                  |   | - |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Stockholders’      Equity:                                                                                                                     |   |                   |    |   |                  |   |   |   |
|      Preferred      Stock, $.01 par value, 860 shares                                                                       |   |                   |    |   |                  |   |   |   |
|         authorized,      issued and outstanding,                                                             |   |                   |    |   |                  |   |   |   |
|         aggregate      liquidation preference $86,000                                                        |   |                   |    |   |                  |   |   |   |
|         at      September 30, 2008 and December 31, 2007                                                     |   |                   | -       |   |                  |   | - |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Common      Stock, $.01 par value, 1 share                                                                             |   |                   |    |   |                  |   |   |   |
|         authorized,      issued and outstanding                                                              |   |                   | -       |   |                  |   | - |   |
|      Additional      paid-in capital                                                                                        |   |                   | 78,956  |   |                  |   | 78,956 |   |
|      Distributions      in excess of retained earnings                                                                      |   |                   | (13,124 | )      |                  |   | (11,158 | ) |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Total      Stockholders’ Equity                                                                                  |   |                   | 65,832  |   |                  |   | 67,798 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Total      Liabilities and Stockholders’ Equity                                                                  |   | $                      | 67,537  |   |                  | $      | 70,541 |   |
| See      accompanying notes to consolidated financial statements.                                                                                    |   |

----

|                                                               |   | For      the            |   |   | For      the           |   |
|--------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                               |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|                                                               |   | September      30,      |   |   | September      30,     |   |
| (in      thousands, except share and per share amounts)            |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Revenues:                                                          |   |                    |   |   |                   |   |   |   |   |   |   |   |
|      Rental                               |   | $                       | 2,756  |   |                   | $      | 2,826 |   |   | $ | 7,947 |   |   | $ | 7,883 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|         Total      revenue |   |                    | 2,756  |   |                   |   | 2,826 |   |   |   | 7,947 |   |   |   | 7,883 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                          |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Rental      operating expenses       |   |                    | 828    |   |                   |   | 716 |   |   |   | 2,258 |   |   |   | 2,207 |   |
|      Real      estate taxes and insurance |   |                    | 439    |   |                   |   | 569 |   |   |   | 1,126 |   |   |   | 1,051 |   |
|      Depreciation      and amortization   |   |                    | 548    |   |                   |   | 547 |   |   |   | 1,642 |   |   |   | 1,641 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|        Total      expenses      |   |                    | 1,815  |   |                   |   | 1,832 |   |   |   | 5,026 |   |   |   | 4,899 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before interest income                                 |   |                    | 941    |   |                   |   | 994 |   |   |   | 2,921 |   |   |   | 2,984 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                               |   |                    | 51     |   |                   |   | 91 |   |   |   | 153 |   |   |   | 254 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income attributable to preferred stockholders             |   | $                       | 992    |   |                   | $      | 1,085 |   |   | $ | 3,074 |   |   | $ | 3,238 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of preferred shares outstanding,      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      basic      and diluted               |   |                    | 860    |   |                   |   | 860 |   |   |   | 860 |   |   |   | 860 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per preferred share, basic and diluted             |   | $                       | 1,153  |   |                   | $      | 1,262 |   |   | $ | 3,574 |   |   | $ | 3,765 |   |
| See      accompanying notes to consolidated financial statements.  |   |

----

|                                                                                                                                                                                                       |   | For      theNine      Months EndedSeptember      30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
| (in      thousands)                                                                                                                                                                                        |   | 2008                                                 |   |   | 2007 |   |
| Cash      flows from operating activities:                                                                                                                                                                 |   |                                                 |   |   |   |   |
|      Net      income                                                                                                                                                              |   | $                                                    | 3,074  |   |   | $ | 3,238 |   |
|      Adjustments      to reconcile net income to net cash                                                                                                                         |   |                                                 |   |   |   |   |   |   |
|              provided      by operating activities:                                                                                       |   |                                                 |   |   |   |   |   |   |
|                      Depreciation      and amortization                                           |   |                                                 | 1,642  |   |   |   | 1,641 |   |
|                      Amortization      of favorable real estate leases                            |   |                                                 | 222    |   |   |   | 222 |   |
|               Changes      in operating assets and liabilities:                                                                      |   |                                                 |   |   |   |   |   |   |
|                      Tenant      rent receivable                                                  |   |                                                 | 150    |   |   |   | 43 |   |
|                      Step      rent receivable                                                    |   |                                                 | 24     |   |   |   | 24 |   |
|                      Prepaid      expenses and other assets                                       |   |                                                 | 2      |   |   |   | (19 | ) |
|                      Accounts      payable and accrued expenses                                   |   |                                                 | (1,066 | ) |   |   | (1,350 | ) |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
|                           Net      cash provided by operating activities |   |                                                 | 4,048  |   |   |   | 3,799 |   |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                 |   |                                                 |   |   |   |   |   |   |
|      Purchase      of real estate assets                                                                                                                                          |   |                                                 | (43    | ) |   |   | - |   |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
|                           Net      cash used for investing activities    |   |                                                 | (43    | ) |   |   | - |   |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                 |   |                                                 |   |   |   |   |   |   |
|      Distributions      to stockholders                                                                                                                                           |   |                                                 | (5,040 | ) |   |   | (5,041 | ) |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
|                           Net      cash used for financing activities    |   |                                                 | (5,040 | ) |   |   | (5,041 | ) |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                                                                                                                             |   |                                                 | (1,035 | ) |   |   | (1,242 | ) |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                                                                                                                                        |   |                                                 | 8,908  |   |   |   | 8,770 |   |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                                                                                                                                              |   | $                                                    | 7,873  |   |   | $ | 7,528 |   |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                                                                                                                                                     |   |                                                 |   |   |   |   |   |   |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
| Disclosure      of non-cash investing activities:                                                                                                                                                          |   |                                                 |   |   |   |   |   |   |
|      Accrued      costs for purchase of real estate assets                                                                                                                        |   | $                                                    | 28     |   |   | $ | - |   |
|                                                                                                                                                                                                       |   |                                                 |   |   |   |   |   |   |
| See      accompanying notes to consolidated financial statements.                                                                                                                                          |   |

----

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

----

| 2. | Income  Taxes |
|----|---------------|

| 3. | Related      Party Transactions |
|----|---------------------------------|

| 4. | Net      Income Per Share |
|----|---------------------------|

| 5. | Segment      Reporting |
|----|------------------------|

----

| 6. | Cash      Distributions |
|----|-------------------------|

| QuarterPaid                 |   | DistributionsPer Share                                                                                       |   | TotalDistributions                             |
|-----------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
|                        |   |                                                                                                         |   |                                           |
| First quarter of      2008  |   |  $                1,995 |   |  $     1,716,000 |
| Second quarter of      2008 |   |  $                1,947 |   |  $     1,674,000 |
| Third quarter of      2008  |   |  $                1,919 |   |  $     1,650,000 |
|                        |   |                                                                                                         |   |                                           |
| First quarter of      2007  |   |  $                1,954 |   |  $     1,680,000 |
| Second quarter of      2007 |   |  $                1,965 |   |  $     1,691,000 |
| Third quarter of      2007  |   |  $                1,943 |   |  $     1,670,000 |

| 7. | Subsequent      Event |
|----|-----------------------|

----

----

----

----

----

| Item      3. | Quantitative      and Qualitative Disclosures About MarketRisk. |
|--------------|-----------------------------------------------------------------|

| Item      4. | Controls      and Procedures. |
|--------------|-------------------------------|

| Item      4T. | Controls      and Procedures. |
|---------------|-------------------------------|

----

| Item      1. | Legal      Proceedings. |
|--------------|-------------------------|

| Item      1A. | Risk      Factors. |
|---------------|--------------------|

| Item      2. | Unregistered      Sales of Equity Securities and Use ofProceeds. |
|--------------|------------------------------------------------------------------|

| Item      3. | Defaults      Upon Senior Securities. |
|--------------|---------------------------------------|

| Item      4. | Submission      of Matters to a Vote of SecurityHolders. |
|--------------|----------------------------------------------------------|

| Item      5. | Other      Information. |
|--------------|-------------------------|

| Item      6. | Exhibits. |
|--------------|-----------|

----

| Date                                          | Signature                                                                                | Title                                                          |
|-----------------------------------------------|------------------------------------------------------------------------------------------|----------------------------------------------------------------|
|                                          |                                                                                     |                                                           |
| Date:  November      14, 2008  | /s/ George J.      Carter           George      J. Carter  | President(Principal      Executive Officer)                    |
|                                          |                                                                                     |                                                           |
| Date:      November 14, 2008             | /s/ Barbara J.      Fournier    Barbara      J. Fournier        | Chief      Operating Officer(Principal      Financial Officer) |

----

| Exhibit      No. | Description                                                                                                                                                                                       |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                   |
| 31.1             | 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.  |

----