Squishmallows Creator Lists Bel-Air Mansion for $37.995 Million

Jonathan Kelly, the creator of the popular Squishmallows plush toy line, has listed his mansion in Bel-Air for $37.995 million. Kelly, who founded Kelly Toys in 1986, saw his products become a viral phenomenon on social media platforms like TikTok, leading to the company’s sale in two separate transactions in 2020 and 2022.

Kelly purchased the luxury property in 2023 for $26 million. The acquisition occurred shortly before the implementation of a new Los Angeles tax on real estate transactions exceeding $5 million. At the time of his purchase, the home had previously been listed for $47.5 million, meaning Kelly acquired the estate for approximately 45 percent less than the original asking price.

Despite the significant investment, Kelly never resided in the home. He has characterized the purchase as a strategic financial move rather than a personal residence. Having held the property for roughly a year, he is now seeking to sell the asset at a higher valuation than his initial purchase price.

The Squishmallows brand, which launched in 2017, served as a primary driver for the company's growth. The business saw a majority stake acquired by Jazwares, a subsidiary of Alleghany Capital, in the first of the two major sales. Following these transactions, Kelly transitioned a portion of his earnings into the Los Angeles luxury real estate market.