Converting lower level to Bed room

[Amar Amar]

I have a 3BR townhome with a rec room in the lowel level (entry level). It already has full Bath. I would like to convert this space into 4th BR. Trying to figure whats the best way to add closet and door for this room. Please help .

Is this a good design ? I feel the space between the closet and door is being wasted. Should I extend the closet all the way ? However, if I do, I believe door cant opened fully making it impossible to move any furnitures. Does it make sense move the door right by the entry door in which case closet could be full length? 

Any other suggestions for the placement of door and closet ? 

Please let me know what you think . Appreciate any  help .