SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C.  20549



                            FORM 8-K

                         CURRENT REPORT

             Pursuant to Section 13 or 15(d) of the

                 Securities Exchange Act of 1934

 Date of Report (Date of earliest event reported):  December 20, 2001



                     Stratus Properties Inc.
     (Exact name of registrant as specified in its charter)

    Delaware                 0-19989             72-1211572
 (State or other          (Commission          (IRS Employer
 jurisdiction of          File Number)         Identification
 incorporation or                                  Number)
   organization)

                 98 San Jacinto Blvd., Suite 220
                       Austin, Texas 78701
            (address of principal executive offices)

 Registrant's telephone number, including area code:  (512) 478-5788





Item 5.   Other Events and Regulation FD Disclosure.

Stratus Properties Inc. announces the establishment of a new bank
credit facility (Exhibit 99.1).



                            SIGNATURE
                       ------------------

          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.

                              Stratus Properties Inc.

                              By:   /s/ C. Donald Whitmire, Jr.
                                   ------------------------------
                                        C. Donald Whitmire, Jr.
                                      Vice President -Controller
                                      (authorized signatory and
                                     Principal Accounting Officer)

Date:  December 21, 2001



                     Stratus Properties Inc.
                         Exhibit Index

Exhibit
Number
- -------
99.1      Press Release dated December 20, 2001 "Stratus
          Properties Announces New Bank Credit Facility".

							Exhibit 99.1


                  STRATUS PROPERTIES ANNOUNCES
                    NEW BANK CREDIT FACILITY


     AUSTIN, TX, December 20, 2001 - Stratus Properties Inc.
(NASDAQ: STRS) announced today that it has established a new bank
credit facility with Comerica Bank-Texas ("Comerica") which
replaces its pre-existing Comerica credit facility.  Stratus has
established a new expanded $25 million revolving line of credit
available for general corporate purposes and an additional $5
million loan specifically designed to provide funds for certain
development costs.  The $5 million loan and the $25 million
revolving line of credit each have an initial term of twenty-
eight months (maturing April 16, 2004).  Currently, Stratus has
$11.6 million outstanding under the revolving line of credit,
leaving $13.4 million available.  There is no balance outstanding
under the $5 million development loan availability.

     William H. Armstrong, Chairman and Chief Executive Officer
of Stratus said, "We are very pleased with our continuing
relationship with Comerica and our new enhanced credit facility,
which we believe provides Stratus greater financial flexibility
to take advantage of our unique properties as the economy begins
to move in a positive direction."

     Stratus is a diversified real estate company engaged in the
development, management and marketing of real estate in the
Austin, Houston and San Antonio, Texas areas.
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