I don't know the car but I work very close to el ceritto. If somone is seriously interested I can go take a bunch of pictures and have a friend with a BMW shop in Berkeley(next to el ceritto) that can do a PPI.
It's possible the car is owned (or was owned) by one of the managers at Bavarian Professionals. I recall (it's been about 10 years now) that one of them owned a nice silver E12 with Alpina wheels.
What a nice looking E12 car. Probably $3K worth of Alpina wheels and steering wheel on it. $7K looks like a very fair price, if it is as nice in person as in the photos.
I'm still a neophyte on this kind of thing so this is a self test but is that mismatched paint on the front right fender and bad door gaps in the left rear?