Why North of Montana Real Estate Is in Such High Demand
The North of Montana neighborhood in Santa Monica is one of the most coveted residential areas on the Westside. Known for its wide, tree-lined streets, proximity to the beach, and prestigious school district, this community attracts homeowners and developers looking to create custom luxury homes that capture both elegance and California comfort.
Whether you’re considering a lot purchase, a tear-down investment, or planning a new construction build, understanding the nuances of lot size, zoning, and pricing is essential.
Lot Sizes: 7,500 vs. 8,900 Square Feet
North of Montana primarily features two lot categories:
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7,500 sq ft lots – Standard parcels offering ample space for luxury single-family homes and moderate outdoor amenities.
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8,900 sq ft lots – Found mostly in Gillette Square, these larger parcels offer greater flexibility, ideal for expansive floor plans, larger pools, and enhanced privacy.
Gillette Square Advantages
Homes in Gillette Square benefit from no alley-access requirement, which significantly impacts design flexibility:
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Attached garages are common, allowing seamless integration with the home’s architecture.
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ADUs (Accessory Dwelling Units) enjoy less restrictive placement options, making guest houses or rental suites easier to include.
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Outdoor living areas — pools, patios, and gardens — can be designed more creatively and spaciously due to fewer setback limitations.
This combination of lot size and layout freedom makes Gillette Square one of the most desirable enclaves within North of Montana.
Understanding Tear-Down and “Economic Tear-Down” Properties
Many buyers in North of Montana seek tear-down opportunities — properties purchased for land value to make way for a new build.
What Is an Economic Tear-Down?
An economic tear-down (or “soft tear-down”) is a property that may still be livable or partially updated, but the cost to remodel doesn’t make financial sense compared to starting fresh. The structure might be usable, but the land’s redevelopment potential offers a better long-term return.
In short:
A full tear-down is about necessity; an economic tear-down is about opportunity.
Pricing Overview
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Economic tear-downs / smaller lots: roughly $4 million
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Larger or prime-location tear-downs: approximately $5 million
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New construction luxury homes: typically $12 million and above
These price points reflect not just lot size, but also proximity to key streets, views, and overall aesthetic surroundings — including the placement of neighboring garages and visibility of utility poles that can subtly influence value.
Design & Investment Considerations
Because North of Montana attracts both owner-builders and spec developers, every lot decision carries weight.
When evaluating a parcel, pay close attention to:
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Orientation within the block (south-facing backyards are preferred for sunlight).
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Pole line visibility — fewer obstructions improve curb appeal.
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Neighboring garage placement — can affect driveway flow and privacy.
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Future resale potential — custom builds in Gillette Square often outperform the broader market due to scale and layout advantages.
The Bottom Line
The North of Montana market blends timeless Santa Monica prestige with unmatched redevelopment potential. Larger 8,900 sq ft lots in Gillette Square stand out for their flexibility, allowing attached garages, generous pool layouts, and modern ADU integration. Whether you’re purchasing for your dream home or for investment, understanding the economics of tear-downs and micro-location details can make a multi-million-dollar difference.