Santa Anita Operating is selling an operation.

The Arcadia company announced an agreement in principle for the sale of its commercial and industrial real estate development operation, Santa Anita Development Corp., to a group headed by two of the development firm’s executive officers. Santa Anita Development’s president, Gary Hamilton, and executive vice president, William Steele, and other investors have formed SDC Development Inc. and have agreed to purchase the development corporation for $16.3 million in cash and notes.