It's right over the final landing on the stairway to my apt. Putting the "closet" floor at the same level as the rest of the floors would mean you would have to duckwalk past that final landing.

I'm thinking about renting it out to a grad student, thus the pillows. I could get a bed in there, it's got windows and a locking door. Just bring in a three story rope ladder, a hotplate and a bedpan and they're set.