The Wall Street Journal said Katie Lee wanted to “downsize a bit,” but plans to stay in the area. She was also quoted as saying, “I am working more and I want to simplify. I have always enjoyed the process of renovating and decorating and I’m ready for my next project.”
After Katie Lee's divorce with Billy Joel in 2009, she got their West Village apartment, which she later sold for $11.65 million (Link).
Here is the real estate listing from Sotheby's, which has 23 pictures of the house if you are interested. I guess it pays to have been married to a rock star.