This is the 261st most frequent Polish word.
pobliżu
"Nearby" or "in the vicinity."
'W pobliżu' here functions to specify the general area relative to the park where the restaurants are located.
W pobliżu parku jest wiele małych restauracji.
There are many small restaurants near the park.
Here, 'w pobliżu' is used as a prepositional phrase to describe the proximity of the store to the speaker's house.
Sklep znajduje się w pobliżu mojego domu.
The store is near my house.
In this case, 'w pobliżu' indicates the location of some place (it) relative to the school, showing its immediate vicinity.