Exhibit 15.1

      October 20, 1998

      Stratus Properties Inc.
      98 San Jacinto Blvd.
      Suite 220
      Austin, TX 78701

      Gentlemen:

      We are aware that Stratus  Properties Inc. has incorporated by
      reference in its Registration Statements (File Nos. 33-78798 and
      333-31059) its Form 10-Q for the quarter ended June 30, 1998,
      which includes our report dated October 20, 1998 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