Wall Niche

[Daniel Design]

Hello,
I want to create a simple niche in the wall, that begins approx 2' above the floor and ends approx 2' bellow the ceiling, so the drywall and crown molding and baseboard that wrap the entire bedroom, will be continuous even while it passes the niche.

The way I figured to do it is cutting the wall, then adding a soffit on top, but then the crown molding doesn't wrap on the soffit?,

The plan is reachable through the dropbox link bellow.

https://www.dropbox.com/s/h3pf259q85...20May%2010.zip

Thank you in advance.