Hi jamesj -
If this is the Gran Sport I'm thinking of, it is an all-Reynolds 531 frame with some really nice components on it.
As long as the frame was not Drewed, I would buy it for that price even if the seat and stem were stuck, just on the glimmer of the possibility of freeing them.
Wheels are expensive purchased new for sure, but buying a parts bike would be a very inexpensive alternative. (E.g., I just bought 2 complete bikes with good quality wheel sets for $20.)
If it were restored to near original with a correct rear wheel replacement, I'd venture to say it could provide you with a very handsome profit were you to sell it.