I highly doubt that it referred to an actual place. It probably is the result of accumulated stories of similar nature passed down through antiquity.
In Plato's Timaeus the Greek Solon is advised by An Egyptian priest, about how many of the stories and legends the Greeks hold dear about their ancient-times are neither ancient nor accurate.
who is called "the first man," and about Niobe; and after the Deluge, of the survival of Deucalion and Pyrrha; and he traced the genealogy of their descendants, and reckoning up the dates, tried to compute how many years ago the events of which he was speaking happened.
Thereupon one of the (Egyptian) priests, who was of a very great age, said: O Solon, Solon, you Hellenes are never anything but children, and there is not an old man among you.
Solon in return asked him what he meant.
I mean to say, he replied, that in mind you are all young; there is no old opinion handed down among you by ancient tradition, nor any science which is hoary with age. And I will tell you why.
There have been, and will be again, many destructions of mankind arising out of many causes; the greatest have been brought about by the agencies of fire and water, and other lesser ones by innumerable other causes.
There is a story, which even you have preserved, that once upon a time Paethon, the son of Helios, having yoked the steeds in his father's chariot, because he was not able to drive them in the path of his father, burnt up all that was upon the earth, and was himself destroyed by a thunderbolt. Now this has the form of a myth, but really signifies a declination of the bodies moving in the heavens around the earth, and a great conflagration of things upon the earth, which recurs after long intervals; at such times those who live upon the mountains and in dry and lofty places are more liable to destruction than those who dwell by rivers or on the seashore. And from this calamity the Nile, who is our never-failing saviour, delivers and preserves us. When, on the other hand, the gods purge the earth with a deluge of water, the survivors in your country are herdsmen and shepherds who dwell on the mountains, but those who, like you, live in cities are carried by the rivers into the sea. Whereas in this land, neither then nor at any other time, does the water come down from above on the fields, having always a tendency to come up from below; for which reason the traditions preserved here are the most ancient.
The Egyptian civilization was ancient when the Greeks were mere upstarts. The legend of Atlantis is most probably the retelling of an older legend. The same way the story of Noah is an exact copy of the Sumerian story of Utnapishtim/Zizudra(from the Epic of Gilgamesh)....Which probably referred to the flooding of the lowland basin that is now the black sea.
Flood legends/legends of Sunken cities are not unique to the Mediterranean and are found throughout the world...as far as the continent of Mu in China....the Land of Kumari and Dwarka in India...and the Native American/Mayan stories.
The computer generated image of the city looks really absurd...there is no way a natural landmass could have formed that way....unless of course the graphic artist really did believe that the city itself was built from ground-up...from the seafloor.The most plausible explanation would be that Atlantis was one of the numerous cities which were flooded/destroyed due to Tsunami caused either by an Earthquake or a meteorite impact....or better yet..it was one one of the cities that were submerged when the Black sea formed/expanded. The same goes for similar legends around the world. The recent underwater discoveries in Japan, and India suggest that there is good reason to believe that a lot of cities were indeed submerged/flooded when the sea-level rose.
There are some pretty interesting books about these stuff out there.
I would recommend this book by Graham Hancock for a good overview about these flooded/lost city legends/stories. Check it out if your local library has em
Underworld: The Mysterious Origins of Civilization
Heaven's Mirror: Quest for the Lost Civilization