close up play room closet behind, utility room. open it like this to make laundry closet at the back door. Enclose the water heater. use space where w/d are now at right of door as a little built in seat for bags & coat hooks over it.
Like this arrangement for washer dryer. Countertop above w&d Benjamin Moore Rock Gray Bathroom and Laundry Room : Home with Baxter did an incredible job renovating their half bath/laundry room. The top paint color is Benjamin Moore Rock Gray.