TIL that all of the people in the song were his friends that he met through Warhol. [The lyrics, describing a series of individuals and their journeys to New York City, refer to several of the regular "superstars" at Andy Warhol's New York studio, the Factory, namely Holly Woodlawn, Candy Darling, Joe Dallesandro, Jackie Curtis and Joe Campbell (referred to in the song by his nickname Sugar Plum Fairy). Candy Darling was also the subject of Reed's earlier song for The Velvet Underground, "Candy Says". I love the song "Candy Says."
Holly actually only died of cancer a few weeks back. It's interesting, because trans people were seen as "exotic" at the time. It was like having a "black friend", or a "gay friend" or something, as a way to show how "forward" one was.
Wow. I had not heard that. So she did end up in LA after all! I think you may be right about that "fabulous friends" theory.