Preferred Equity in Real Estate Transaction

I am reading the following article on therealdeal.com:
https://therealdeal.com/2020/07/01/all-year-and-d…

I am trying to understand how this would exactly work:

"The new deal also gives Werner, a prolific syndicator within the Borough Park Orthodox community, the option to pay for a portion of the transaction with a preferred equity stake, with a maximum value of $17.3 million for stage one and $12.3 million for stage two. The preferred equity will mature in June 2021 — with two 12-month extension options — and carry an initial interest rate of 6 percent."

Can someone clarify this?

 

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