The Altiplano in the Andes.
You have several clues. First of all there's a city, in a lake, that meets all the requirements. Secondly that city is in the area where coca was first domesticated to provide high levels of cocaine. Thirdly, Egyptian mummies of the time have cocaine in the body's tissue cells.
We also find a similar site in Southern Portugual. It's laid out just like the place in the Andes.
Quite logically the Andean dope dealers sought markets around the world. They built settlements to support the transport of their product.
The business was so successful it's still operating!
You're not the only one who thinks this. Jim Allen has the below linked site, a book and a pretty good one hour documentary on this. There was a lot more going on in South America in prehistory times than most can/will admit.
I would choose SA or the Caribbean as a site for Atlantis over anything in the Mediterranean or Europe. I'm leaning toward Sundaland these days though.
The Altiplano in the Andes.