This is the 261st most frequent Polish word.
pobliżu
"Nearby" or "in the vicinity."
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.
Jest w pobliżu szkoły, więc mogę tam łatwo dojść pieszo.
It is near the school, so I can easily walk there.
'W pobliżu' here functions to specify the general area relative to the park where the restaurants are located.