Depends on condition. I sold a fully overhauled 1989 520 in nice shape last year for $450--new everything down to grease & bearings, etc. This was in NYC.
However I purchased it for $100, but that was a steal. If it needs work, offer your friend $200 and see what he says.
It was a really great bike, I bought it for myself not to sell. But I just have too many bikes and it overlapped too much with a couple others, so it never got ridden.
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1964 JRJ (Bob Jackson), 1973 Wes Mason, 1974 Raleigh Gran Sport, 1986 Schwinn High Sierra, 2000ish Colian (Colin Laing), 2011 Dick Chafe, 2013 Velo Orange Pass Hunter