You probably were in proximity long enough to have triggered something. You never know — your friends daughter may have been in the same line somewhere at the airport or a lounge as well.
I used to get this a lot as I’m 1-2 degrees of separation from some highish profile people. FB seems to adapt and move on to a different strategy over time.
Or .. they have a database from mobile IP to rough location - or even, without knowing your exact location, perhaps both of you were using the same convention free WiFi, or the same Verizon proxy (or whatever), which would indicate close proximity even without giving the location directly.
Are you using iphone or android?
Perhaps there is some way to tell via other people’s devices that you are nearby.