"The children receive good results academically and the inspections have all been very favourable."
The home currently has three children in full-time care, and 25 others who come in for one or two weekends a month as shared care. It is able to cater for a maximum of nine children in the main centre, and 11 for respite care.
Mr Wallace added: "When I told the children about the closure, I told them they would be famous as the last young people who were residential at Strawberry Field. That made them feel better.
"Our priority has got to be the three children who are now being cared for and ensuring they get the best placements possible."
The centre was first opened in 1936 by General Evangeline Booth as a home for children from the slums. The rambling Victorian mansion John Lennon would have known as a child was replaced by a new building in the early 1970s. However, the original gates remain because they have become a tourist attraction, even though they no longer form the entrance to the site.
Lennon lived with his aunt as a child after his father walked out on him and his mother decided she could no longer provide the care he needed.
Despite his aunt's objections, Lennon would often go to garden parties at Strawberry Field with his friends, Ivan, Nigel and Pete. Lennon later said he liked going there because he felt a kinship with the orphans.
It made a lasting impression on him and, since then, the home has become closely associated with the Beatle and was said to hold a place close to John Lennon's heart.
He made a donation which helped fund the home's Lennon Court, which houses 16 to 18-year-olds preparing to leave care. And, following his assassination outside his home in New York's Dakota Building in December, 1980, a space was set aside at nearby Central Park called Strawberry Fields.
