Sounds like an easier and better solution would just be to buy an E89 with the N54.
Newer, more luxurious and contented cruiser without the headache or worry about being a swap. If you're really set on the E85/E86, you're probably still better off to buy an ///M and supercharge it.
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E46 M3 Coupe 6MT Jet Black/Cinnamon GONE
E85 Z4M Roadster Imola Red/Black GONE
E90 M3 Sedan 6MT Jerez Black/Fox Red GONE
E86 Z4M Coupe Interlagos Blue/Black
E92 M3 Coupe 6MT Interlagos Blue/Fox Red - Build Thread
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