David Foster & Yolanda Hadid's Former Malibu Site Listed for Millions After Fire

David Foster and Yolanda Hadid's onetime Malibu estate has hit the market as a fire-scorched lot for millions ... TMZ has learned.

The 3.25-acre ocean view lot reduced to ashes in last year's Palisades Fire is on the market for just under $12 million, giving one lucky buyer the chance to rebuild a masterpiece.

The conceptual renderings by Bowery Design Group envision a 14,000-square-foot gated compound, with 6 bedrooms, 10 bathrooms, 14-foot ceilings, and sweeping 270-degree views of the Pacific Ocean.

The dream build also includes every luxury under the sun ... a theater, spa, gym, game room, and nearly 4,000 square feet of outdoor living space with three pools, a bocce court, and a full sports court.

The property still comes with La Costa Beach Club access and proximity to Malibu hot spots like Nobu, Soho House and the Malibu Pier.

Daniel Milstein, who holds the listing with Aaron Kirman of Christie's International Real Estate, tells TMZ ... "This is a once in a lifetime opportunity to rebuild an iconic residence on a lot that is rarely available in proper Malibu. Thanks to Bowery Design Group we have a great vision as to what this property can be developed into."

Yolanda and David first scooped up the home in 2007 for $4.5 million, transforming it into a European-style villa where the Hadid sisters spent their teen years before it became a TV famous backdrop on "The Real Housewives of Beverly Hills."