There is probably a historical city that would match some of the descriptors of Atlantis, and it's developmental level might be more of a late medieval to renaissance timeframe. Colloquially it was a way of explaining great achievements by non-European civilizations and reinforcing superiority complexes, more recently it becomes an oral legend that may have root in truly ancient events like the Black Sea forming and the megalithic constructions of late Neolithic Europe. Personally I think the city that might have fueled the story is near the modern Sea of Azov (perhaps near modern Kerch) given the descriptions, but many truly ancient ruins are starting to be found around the world so who knows. Troy, Paititi, and the First Emperor's Tomb were also once thought to be simply legends for centuries as well