I've been watching Honda cb's and cl's and I think that is about average, at least for my area, if his description is accurate. Here is a comperable bike in MI that appears to be in similar condition for $1800:
Offer him $1200, and don't be too quick to move up.
edit: didn't see the low miles on the bike in peoria. maybe a better deal than i first thought. Why does he think it needs restored? It looks like it has been!
may offer 1500?