Exhibit 15.1
   July 25, 2000

   Stratus Properties Inc.
   98 San Jacinto Blvd.
   Austin, TX  78701

   Gentlemen:

   We are aware that Stratus Properties Inc. has incorporated by reference
   in its Registration Statements (File Nos. 33-78798, 333-31059 and 333-
   52995) its Form 10-Q for the quarter ended June 30, 2000, which
   includes our report dated July 25, 2000 covering the unaudited
   interim financial information contained therein. Pursuant to Regulation
   C of  the Securities Act of 1933 (the Act), this report is not
   considered a part of the registration statements prepared or certified
   by our firm or a report prepared or certified by our firm within the
   meaning of Sections 7 and 11 of the Act.


   Very truly yours,

   /s/ Arthur Andersen LLP