It doesn't sound too high, but I would need some more information. For instance, approximately where in Prospect Heights is the apt. located?; what is the square footage?; Is it a co-op or condo?; how many total units are in the building?; is their any outdoor space?; is their laundry in the building?; is their a full or part-time super?; is their a doorman?
Something else you may want to try is doing a search in Trulia for all 2 bedrooms in the same zipcode as this 2 bedroom apartment. Trulia will list for you a number of comps and will also calculate the median price per square foot.
If you prefer maintenance free condo/townhouse, you can see this nice one http://msx.mlxchange.com/4.2.07.27/Tools/MultiImageViewer/Me at 134 COPPERTREE CT, Edison nj http://maps.google.com/maps?f=d&hl=en&geocode=&s is only about $600k...
This community is very close to NYC Train station as you can see ... http://maps.google.com/maps?f=d&hl=en&geocode=&s