The musician died of complications from a liver transplant Oct. 27. He was 71.
Reed's management team and his wife, Laurie Anderson, organized the Monday night event, the New York Post reported.
Paul Simon sang a solo version of "Pale Blue Eyes" after a clip from the 1980 film, "One Trick Pony," was shown. Simon and Reed co-starred in the picture.
Patti Smith and guitarist Lenny Kaye also performed Reed's song "Perfect Day," while Debbie Harry of Blondie sang "White Light, White Heat" and Antony Hegarty from Antony and the Johnsons sang "Candy Says."
Reed's sister, Merrill, producer Hal Wilner and artist-film director Julian Schnabel offered eulogies. the Post said.
2014: The Year in Music [PHOTOS]