This is a grey market E36. I don't know how or why this made it into the US.
The seller says it has "the California state approval badge under the hood for this being an import", which, I suppose, means it's legal in CA (and probably the rest of the country).
As I said, I'm just putting this out here for you to look at. Unfortunately, the Craigslist ad has just two pictures.
Located in Sherman Oaks, CA, click here to see the ad. 