Personally, i’d go second hand or spend more money.
Is he a big lad? Starter bikes tend to be shortish in the top tube (20.5″ ish) and that will be a bit cramped on a race track if he’s much over 5’7″ ish (OK for street/park if you like it tight). Top tube length is much more noticeable on bmx’s than mtb’s and even 1/4″ makes a fair difference. Also Hi-ten steel will be pretty heavy compared to 4130 or Alu.
1 piece cranks don’t take much bending either (12 stone and a heavy landing should see the end of them or the pedals if they’re plastic).
Should be able to pick up something a bit better/more suitable than that with a bit of searching, although that bike would get him started and is better than nothing.
Edit – if he could double his budget i’ve got something really nice for sale 😉