The underlined sentence is okay: The protagonist notices the seashore from his memories nearby, where he lives in his new identity. "Nearby" is an adverb here. "Nearby" is an adverb or an adjective, it cannot be a preposition.
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park sang joonStrangely, both Hitomi and Genzaburou have a specific scar on their foot and our protagonist notices the seashore from his memory nearby where his new identity lives.This sounds most unnatural to me. It would just about work with '... the seashore of his memory near where his new identity lives.'