Story summary
Jonathan Kelly, the creator of Squishmallows plush toys, has listed his Bel-Air mansion for sale at nearly $38 million, up from its original purchase price of $26 million in 2023. Squishmallows gained immense popularity during the pandemic, especially on TikTok, transforming into a viral sensation and leading to significant profits for Kelly Toys, founded by Jonathan Kelly in 1986. The company sold a majority stake to Jazwares, a subsidiary of Alleghany Capital, in 2020, with another transaction occurring in 2022. Interestingly, less than half a mile away from Kelly's property, Casa Encantada, a 40,000-square-foot estate overlooking the same country club, was recently purchased for $130 million by an entity linked to billionaire Peter Thiel.
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Jonathan Kelly, who made a fortune selling Squishmallows, the plush toys, has now put his Bel-Air mansion on the market for nearly $38 million, according to a report by Realtor.com.
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who → make → Realtor.com
During the pandemic, the Squishmallows craze took TikTok by storm, turning the once-niche toys into a viral sensation.
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craze → take → sensation
The man behind them, Jonathan Kelly, cashed out of the toy business and put part of the proceeds into Los Angeles real estate.
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man → cash → estate
Now, he is looking to cash in on it.
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he → look → it
Sotheby's International Realty
Kelly Toys, founded in 1986, launched its Squishmallows, an ultra-soft, marshmallow-like collectible, in 2017.
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Toys → found → 2017
The line quickly became a fast-growing part of the business.
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line → become → business
Following the massive demand, the company was sold in two transactions, one in 2020 and another in 2022.
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company → follow → 2022
The first, announced in April 2020, gave Jazwares, a subsidiary of Alleghany Capital, a majority stake.
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first → announce → stake
Pic credit: Sotheby's International Realty
Jonathan Kelly purchased the Bel-Air house in 2023.
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Kelly → purchase → 2023
He paid $26 million for it.
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He → pay → it
He never lived in it, and now it is finally time to sell it.
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it → live → it
He said he bought the property for a relatively low price.
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he → say → price
The property had first been listed at $47.5 million, so his purchase landed roughly 45 per cent under the original asking price.
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purchase → list → price
This was right before LA’s ‘mansion tax’ on homes priced above $5 million took effect.
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tax → price → effect
Pic credit: Sotheby's International Realty
A house he never lived in
Pic credit: Sotheby's International Realty
Kelly always considered the Bel-Air mansion an investment.
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mansion → live → ?
So he never moved into the three-level mansion.
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he → move → mansion
It sits above the fourth green of the Bel-Air Country Club golf course.
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It → sit → course
An investor’s house gets judged differently from a family home, by the gap between what went in and what comes out.
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what → judge → gap
“It’s an asset, and it’s time to exit,” he told the outlet.
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he → ’ → outlet
So was the house sitting in the dark?
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house → sit → dark
Kelly had rented it out for a substantial amount of money, according to listing agent Marc Noah of Sotheby’s International Realty.
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Kelly → rent → Realty
Neither of them was willing to reveal what figure was put on it.
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figure → reveal → it
The 16,850-square-foot home at 638 Siena Way is asking $37.995 million.
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home → ask → million
The street is lined with sprawling estates priced in the nine figures.
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street → line → figures
Developer Ardie Tavangarian is asking $135 million for an eight-bedroom spec house there.
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Tavangarian → ask → house
Less than half a mile away, a company tied to billionaire Peter Thiel paid $130 million for Casa Encantada, a storied 40,000-square-foot estate overlooking the same country club.
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company → tie → club
The deal came at a foreclosure auction in July, three months after the previous owner’s family relisted the property at $170 million.
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family → come → million
It was listed for $250 million in 2023.
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It → list → 2023
Pic credit: Sotheby's International Realty
Listing agent Noah calls Kelly’s price an ‘entry point’ for the neighbourhood.
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Noah → call → neighbourhood
In a place where a foreclosure auction can still clear $130 million, $37.995 million is simply the cheap seat.
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million → clear → million
According to him, the mansion tax in LA slowed the high-end real estate market at first, but “like anything, people have gotten accustomed to it.”
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people → accord → it
Pic credit: Sotheby's International Realty
What the buyer gets
Pic credit: Sotheby's International Realty
The house has everything a Bel-Air buyer’s checklist might look for.
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checklist → get → everything
The mansion built in 2022 is spread across 16,849 square feet on a 37,127-square-foot lot.
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mansion → build → lot
It has eight luxe bedrooms, eight full bathrooms and three partial ones.
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It → have → bedrooms
The entertaining side is well stocked: a media room, a screen room, a wet bar, a wine cellar, an outdoor pool, and a spa.
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side → entertain → ?
Pic credit: Sotheby's International Realty
Hardwood and stone flooring run through the interior.
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Hardwood → run → interior
There is one fireplace, and central air-conditioning is zoned so different parts of the house can be cooled separately.
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parts → be → house
A house comes with a garage.
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house → come → garage
The house sits on the golf course, with golf views and city strip views from the property.
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house → sit → property
At the asking price, that works out to roughly $2,255 a square foot.
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that → work → 2,255
The Aporia
