Paradise Valley, AZ. Old homes are often bulldozed to make way for large estates. But Andrea and Thomas Kotoske chose a more modest approach for their remodel so they could devote plenty of real estate to outdoor living.

Several of the house's walls slide open to fan-cooled terraces. Brightly colored walls and contemporary water features are bold backdrops for desert plants. Large palo verde trees shade the roof and interior rooms, reducing air-conditioning needs. "A masterful juxtaposition of architecture and plants," said a juror.

DESIGN: Steve Martino & Associates, Phoenix (