If it's been a California car it's whole life it's most likely a Nikasil block as the gas they had in California back then didn't eat the block like it did in pretty much the rest of the world.
Check to see if the block is Nikasil or not.
Then if Nikasil check the leakdown.
If it's Nikasil and the leakdown is fine, and if it's been a Cali car buy it and enjoy as there should be no problems since the gas we have had for some time doesn't eat the Nikasil blocks and there should be no further damage.
Cosmos Black/Black 1995 540iA M-Sport
BMW Individual Exclusive Edition, 1 of 65 total, 9/25/95 Build