According to The Pictoral History of the America's Cup Races by Robert Carrick, Atlantic was designed by Philip Elsworth and built in the Brooklyn, NY yard of John F. Mumm, for a syndicate of the Atlantic Yacht Club. It was designed as a defence candidate for the 1886 America's Cup.

Atlantic lost in the trials to defend the 6th America's Cup in 1886 and again in 1887. According to Americascup.com:

"The American selection trials for the defense were sailed on 21st and 25th August 1886. Four contenders raced. Two "old" racers: Puritan (Edward Burgess 1885 victorious design) and Priscilla (A. Cary Smith 1885 design already beaten the previous year). Two new boats were also there: Atlantic, a classic sloop modeled for the NYYC by Philip Elsworth, and Mayflower. During the two races, Mayflower respectively crushed Atlantic and then Puritan and the Boston boat [Mayflower] was immediately selected to defend the Cup."