Not a chance. You can get a complete bike with the same frame for $549.
http://www.nashbar.com/bikes/Product...LAID=858047907

"Reg $1100" is talking about the complete bike with Shimano 105 components.
http://www.dickssportinggoods.com/pr...eProductSearch

That's a "take-off" frame, which means your LBS bought that bike in order to cannibalize the parts off it to sell on a custom build. They probably already made their profit off of the bike and want to unload the frame, but they seem to be holding out for a sucker who will let them make triple the profit again.

I'd show them a printout of either of those ads and offer $200, then consider finding a more honest LBS. I have bought take-off frames before, but they were never more than $150 (back in the mid 90's).